Despite the collapse in equity market volumes during Q3 2010, several bulge-bracket brokers saw an increase in equity trading and sales revenues over the period compared to the previous quarter, although year on year most were down.
J.P. Morgan reported Q3 2010 equity sales and trading revenue up 9.3% from US$1.038 billion to US$1.138 billion quarter on quarter, and rising 21% year on year from US$941 million. Goldman Sachs and Bank of America Merrill Lynch (BAML) each saw returns rise quarter on quarter but both reported lower figures than a year ago. Goldman's Q3 2010 equity sales and trading revenues rose to US$1.86 billion, up 53% on the US$1.212 billion the bank achieved in Q2, but 33% lower year on year than Q3 2009's US$2.775 billion. BAML reported revenues of US$1 billion for Q3 2010, up 14% on Q2 (US$878 million) but down 23% on Q3 2009 (US$1.3 billion).
Morgan Stanley saw Q3 equity sales and trading revenues drop 34% to US$925 million from US$1.4 billion in Q2 2010 and 23% from US$1.2 billion in Q3 2009. Third-quarter revenues for equity sales and trading at Credit Suisse fell 37% quarter on quarter to US$1.120 billion from US$1.786, down 41% from the same period 2009 (US$1.902 billion).
French agency broker CA Cheuvreux and transaction cost analysis provider TAG noted in their monthly ”Market Indicators' report that pan-European equity trading volumes increased in September, up 15% compared to August when market turnover reached a year low of €668 billion.
July and August saw volumes fall sharply against previous months, notably May, when trading in all financial markets were fuelled by uncertainty over debt levels in several euro-zone countries. The turnover uptick in September was due to an increase in both the number of trades and in average trade size according to CA Cheuvreux and TAG. The report also noted that volatility continued to decrease while spreads tightened across European trading venues.