The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

The X-Men of e-finance

In the heartland of Gotham and the Bay Area of San Francisco, dwarfed by the high-rise headquarters of those they seek to challenge, lurk a select few individuals waiting to strike. These men are behind the mutant companies seeking to change the dynamics of equity capital-raising forever. They are much smaller than their prey, but less weighed down by legacy systems. The time has come for the internet-based new issue houses to show what they can do, reports Antony Currie

       

New web-based securities Firms once evoked fear in their intended targets, but lack of immediate action has lessened the fear of the unknown. "Last year I was convinced that WR Hambrecht and Wit Capital were going seriously to threaten our way of doing business," says the head of investment banking at an incumbent bulge bracket Firm. "But now I just regard them as yet another small contender." Even one of the leading e-Finance analysts, Greg Smith at Chase Hambrecht and Quist, thinks that: "the era of the e-investment bank has faded somewhat".


The protagonists are hoping that their relative silence until now has lulled such people into a false sense of security, and look for inspiration to the success of their mutant cousins in the battle for secondary trading. Discount broker Charles Schwab led the way with on-line retail trading, followed by rival TD Waterhouse and start-ups such as Ameritrade and E*Trade.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree