A Charles Schwab branch in midtown Manhattan.DIMA GAVRYSH/The Associated Press
Facing an extremely soft market, U.S. brokerages are opting to cut and run from some of their European operations.
Charles Schwab is the latest to act, announcing to clients Thursday that it is closing the European division of its derivatives trading unit OptionsXpress.
That follows the decision from TD Ameritrade to close accounts and stop facilitating trades for clients in Italy and Belgium. Operations in other European countries will also see some of their services cut.
For now, the companies are simply offering standard PR lines about reevaluating their businesses from time to time. But Reuters notes that Europe equity volumes are down about 20 per cent from last year, and are at their lowest levels since 2009.
Makes you wonder whether the European brokerages wish they could flee themselves.
Tim Kiladze