Mostly, these sell-side firms are fighting to keep the execution business any way that they can because the Buy-Side is increasing internalizing trading departments.
Another example, BofA bought DASoft, which - as we all know - is a marginal, but reliable Trading platform that everyone and thier uncle 'rebrands' as as their own system. BofA then throws it at potential and existing Prime Brokerage customers as their DMA solution to keep execution in house.
I was talking to a guy who is setting up a big hedge fund (long/short, long term) and he was talking about REDI, DASoft, Sterling, and (in my mind-of course) I was chuckling. 1,000's of traders have used these programs at bucket shops for years to burn and churn, and here some Billion + hedge fund is asking if I am familiar with these.
