Besides the outright online brokers, Toronto-Dominion Bank (TD -2.3%) also turned down after Charles Schwab eliminated commissions on some online trades.
That's because TD holds ~43% stake in TD Ameritrade (AMTD -25.6%) as of June 30.
National Bank Financial analyst Gabriel Dechaine figures that "for every 10% reduction in AMTD's forecasts, TD's forecasts decline by 1%."
Increased competitive factors are likely to resurrect industry M&A talks and could lead to "renewed speculation of an AMTD-led (and TD-supported) acquisition" of ETFC to generate cost synergies, writes Dechaine.
via Bloomberg First Word.
Previously: Online brokers tumble after Schwab cuts commissions to zero (Oct. 1)
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