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IIAC president Ian Russell is seen in this file photo.
IIAC president Ian Russell is seen in this file photo.
(Fred Lum/The Globe and Mail/Fred Lum/The Globe and Mail)

Letter from the IIAC: Why it matters when small brokers fold

As small dealer firms close their doors or find a partner to stay afloat, their investments in trading technology will be difficult to replicate for new entrants should equity markets rebound, an industry association says.

Ian Russell, the head of the Investment Industry Association of Canada, is calling on securities industry regulators to make changes that will reduce the stress for smaller players who face a difficult operating environment of weak resource markets and fewer new listings without the benefits of scale. Mr. Russell says these brokerages will be difficult to replace because of several barriers to entry that have fallen into place in the past few years.