“We believe daily average revenue trades (DARTs) at the discount brokers declined 2% to 4% m/m in November (+18% y/y) given our channel checks with private brokers,” say BMO Capital Markets analysts David J Chiaverini and Richard Fellinger in their recent study of discount brokers.
This is a period when brokers usually see a seasonal 3% m/m uptick in DARTs, so what caused the fall?
Low volatility pressured trading volumes
The culprit was exceptionally low volatility prevailing through November. In fact the VIX never managed to surpass...
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