Power in numbers

Amid the ongoing M&A wave in the exchange and interdealer broker space, six smaller independent brokers have joined forces in a bid to stay afloat in ever-deepening liquidity pools. David Watkins reports

As the energy exchange space continues to merge and electronic trading volumes rocket, the over-the-counter (OTC) markets are becoming increasingly populated with larger players. The risks are therefore growing for smaller independent shops - classified as anything from mid-size firms to low-key, four-person basement operations - as the larger companies flex their financial and technological muscles.

There are over a hundred such boutique brokerage firms in the US crude oil and natural gas space