(New York)

If you need some more information to understand why the big wirehouses are trying to pull out of the broker protocol, this is it. In 2017, independent broker-dealers snagged 118 wirehouse teams and took almost $28 bn in AUM, up 23% from 2016. The success comes as independents have closed the technology and product gaps with larger rivals, and IPO allotments have become scarce at wirehouses.

FINSUM: Wirehouses are generally growing fearful and are trying to throw up hurdles that keep brokers from breaking away. Hence the pullout from the broker protocol.