NEW YORK (
stock's huge trading volumes may give a much needed shot in the arm to
and other online brokers.
The big surge in shares of beaten-down financial names has lifted revenues at electronic trading platform
The Wall Street Journal
reported Thursday. In an interview with the newspaper, Direct Edge CEO William O'Brien specifically mentioned Citigroup, along with
O'Brien went on to say the trend "doesn't necessarily" favor his platform over rivals like
Nasdaq OMX Group
. Translation: Everybody wins, and all those companies should get a revenue boost.
But what about online brokers? There's no reason the trend shouldn't benefit them as well. Look for a nice surprise at
Of course, these trades in zombie stocks, which, ironically enough, include E*Trade itself, aren't going to radically change the earnings profile for any of the online brokers, but it's worth taking into account when sizing up their earnings potential for the quarter.
Written by Dan Freed in New York