{"id":50871,"date":"2019-10-01T21:16:00","date_gmt":"2019-10-02T01:16:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=50871"},"modified":"2025-11-21T21:17:18","modified_gmt":"2025-11-22T02:17:18","slug":"october-1-2019","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=50871","title":{"rendered":"October 1, 2019"},"content":{"rendered":"

Schwab is eliminating brokerage commissions<\/a>:<\/p>\n

\n

Discount brokerage Charles Schwab Corp said on Tuesday it is eliminating commissions for online trading of stocks, ETFs and options listed on U.S. or Canadian exchanges.<\/p>\n

Schwab\u2019s latest move is likely to have a knock-on effect across the sector, forcing rivals to follow suit and eliminate commissions, experts warned.
…<\/b>
The decision marks an inflection point for online brokers, as newer, nimbler rivals such as Menlo Park, California-based startup brokerage Robinhood have been capturing market share in recent years by offering commission-free stock trades.<\/p>\n

The firms are able to offer the free trading by selling their customers\u2019 orders to so-called wholesale market makers, such as Citadel Securities and Virtu Financial, which aim to make a profit on the spread between the bid and the offer on the shares.
…<\/b>
\u201cStocks commissions long ago stopped being a primary revenue item for Schwab, dropping to 8 per cent of revenues last year and currently under 5 per cent. Net interest income from customer deposits and asset management fees are far more important,\u201d added [director of financial institutions research at Argus Research Stephen] Biggar in an email to Reuters.<\/p>\n

Schwab made $139 million from selling its customers\u2019 orders in 2018, up 22 per cent from the previous year, according to a regulatory filing.<\/p>\n

TD Ameritrade was paid $458 million for customer orders in its last fiscal year, up from $320 million the year before, according to a filing.<\/p>\n<\/blockquote>\n

Asset Management fees? Yes, Schwab offers ETFs and mutual funds<\/a>.<\/p>\n

Investors will be pleased to remember that there isn’t much chance of such a thing happening here. Why should the bank-owned market-makers pay the bank-owned brokerages for order flow? They get it already! Why should they use asset management to subsidize commission trading? They’ve got it already! Thank you, securities regulators and Competition Bureau for the fine job you’ve done over the years.<\/p>\n

Meanwhile, some distraction from impeachment proceedings<\/a> has been found necessary:<\/p>\n

\n

As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don\u2019t have a clue. Pathetic!<\/p>\n<\/blockquote>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1841 %<\/td>\n1,889.9<\/td>\n<\/tr>\n
FixedFloater<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.1841 %<\/td>\n3,467.8<\/td>\n<\/tr>\n
Floater<\/td>\n6.38 %<\/td>\n6.55 %<\/td>\n47,245<\/td>\n13.16<\/td>\n4<\/td>\n-0.1841 %<\/td>\n1,998.5<\/td>\n<\/tr>\n
OpRet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1690 %<\/td>\n3,390.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.65 %<\/td>\n4.59 %<\/td>\n53,381<\/td>\n3.99<\/td>\n7<\/td>\n0.1690 %<\/td>\n4,049.3<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1690 %<\/td>\n3,159.4<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.58 %<\/td>\n-19.38 %<\/td>\n59,240<\/td>\n0.09<\/td>\n6<\/td>\n-0.0259 %<\/td>\n3,005.3<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.41 %<\/td>\n5.48 %<\/td>\n69,879<\/td>\n14.53<\/td>\n28<\/td>\n-0.1415 %<\/td>\n3,178.3<\/td>\n<\/tr>\n
FixedReset Disc<\/td>\n5.55 %<\/td>\n5.47 %<\/td>\n168,965<\/td>\n14.36<\/td>\n72<\/td>\n-0.3116 %<\/td>\n2,077.5<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.23 %<\/td>\n5.79 %<\/td>\n65,015<\/td>\n7.89<\/td>\n27<\/td>\n-0.1908 %<\/td>\n3,151.8<\/td>\n<\/tr>\n
FloatingReset<\/td>\n4.61 %<\/td>\n6.85 %<\/td>\n56,305<\/td>\n7.92<\/td>\n3<\/td>\n-0.1778 %<\/td>\n2,341.2<\/td>\n<\/tr>\n
FixedReset Prem<\/td>\n5.23 %<\/td>\n3.57 %<\/td>\n123,949<\/td>\n1.56<\/td>\n14<\/td>\n-0.0888 %<\/td>\n2,602.1<\/td>\n<\/tr>\n
FixedReset Bank Non<\/td>\n1.97 %<\/td>\n4.09 %<\/td>\n85,818<\/td>\n2.26<\/td>\n3<\/td>\n-0.0554 %<\/td>\n2,679.6<\/td>\n<\/tr>\n
FixedReset Ins Non<\/td>\n5.52 %<\/td>\n8.14 %<\/td>\n100,250<\/td>\n7.86<\/td>\n21<\/td>\n-0.7303 %<\/td>\n2,091.4<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\n-3.27 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.89
\nBid-YTW : 9.48 %<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset Disc<\/td>\n-3.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 15.48
\nEvaluated at bid price : 15.48
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n
HSE.PR.A<\/td>\nFixedReset Disc<\/td>\n-2.36 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 10.78
\nEvaluated at bid price : 10.78
\nBid-YTW : 7.15 %<\/td>\n<\/tr>\n
IFC.PR.A<\/td>\nFixedReset Ins Non<\/td>\n-2.10 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.54
\nBid-YTW : 10.74 %<\/td>\n<\/tr>\n
MFC.PR.J<\/td>\nFixedReset Ins Non<\/td>\n-2.06 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 18.51
\nBid-YTW : 8.14 %<\/td>\n<\/tr>\n
TD.PF.D<\/td>\nFixedReset Disc<\/td>\n-1.97 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 19.43
\nEvaluated at bid price : 19.43
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n
MFC.PR.N<\/td>\nFixedReset Ins Non<\/td>\n-1.92 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 15.81
\nBid-YTW : 9.42 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset Ins Non<\/td>\n-1.84 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 12.29
\nBid-YTW : 11.12 %<\/td>\n<\/tr>\n
HSE.PR.G<\/td>\nFixedReset Disc<\/td>\n-1.75 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.40
\nEvaluated at bid price : 17.40
\nBid-YTW : 7.13 %<\/td>\n<\/tr>\n
MFC.PR.B<\/td>\nDeemed-Retractible<\/td>\n-1.51 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.48
\nBid-YTW : 6.61 %<\/td>\n<\/tr>\n
TD.PF.C<\/td>\nFixedReset Disc<\/td>\n-1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.04
\nEvaluated at bid price : 17.04
\nBid-YTW : 5.47 %<\/td>\n<\/tr>\n
CM.PR.Q<\/td>\nFixedReset Disc<\/td>\n-1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.85
\nEvaluated at bid price : 17.85
\nBid-YTW : 5.85 %<\/td>\n<\/tr>\n
TD.PF.A<\/td>\nFixedReset Disc<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.37
\nEvaluated at bid price : 17.37
\nBid-YTW : 5.35 %<\/td>\n<\/tr>\n
TRP.PR.B<\/td>\nFixedReset Disc<\/td>\n-1.19 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 10.77
\nEvaluated at bid price : 10.77
\nBid-YTW : 6.25 %<\/td>\n<\/tr>\n
BMO.PR.Y<\/td>\nFixedReset Disc<\/td>\n-1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 18.78
\nEvaluated at bid price : 18.78
\nBid-YTW : 5.54 %<\/td>\n<\/tr>\n
CU.PR.F<\/td>\nPerpetual-Discount<\/td>\n-1.16 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 21.35
\nEvaluated at bid price : 21.35
\nBid-YTW : 5.33 %<\/td>\n<\/tr>\n
SLF.PR.J<\/td>\nFloatingReset<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 12.89
\nBid-YTW : 11.09 %<\/td>\n<\/tr>\n
TRP.PR.E<\/td>\nFixedReset Disc<\/td>\n-1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 15.51
\nEvaluated at bid price : 15.51
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n
CM.PR.S<\/td>\nFixedReset Disc<\/td>\n-1.11 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.80
\nEvaluated at bid price : 17.80
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 11.51
\nEvaluated at bid price : 11.51
\nBid-YTW : 6.10 %<\/td>\n<\/tr>\n
BIP.PR.A<\/td>\nFixedReset Disc<\/td>\n1.17 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 18.10
\nEvaluated at bid price : 18.10
\nBid-YTW : 6.90 %<\/td>\n<\/tr>\n
CGI.PR.D<\/td>\nSplitShare<\/td>\n1.20 %<\/td>\nYTW SCENARIO
\nMaturity Type : Soft Maturity
\nMaturity Date\t: 2023-06-14
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.40
\nBid-YTW : 3.35 %<\/td>\n<\/tr>\n
PWF.PR.T<\/td>\nFixedReset Disc<\/td>\n1.33 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.50
\nEvaluated at bid price : 17.50
\nBid-YTW : 5.67 %<\/td>\n<\/tr>\n
BAM.PR.Z<\/td>\nFixedReset Disc<\/td>\n1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 18.85
\nEvaluated at bid price : 18.85
\nBid-YTW : 5.93 %<\/td>\n<\/tr>\n
BMO.PR.T<\/td>\nFixedReset Disc<\/td>\n1.54 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.11
\nEvaluated at bid price : 17.11
\nBid-YTW : 5.39 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
RY.PR.H<\/td>\nFixedReset Disc<\/td>\n106,689<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.60
\nEvaluated at bid price : 17.60
\nBid-YTW : 5.27 %<\/td>\n<\/tr>\n
POW.PR.G<\/td>\nPerpetual-Discount<\/td>\n78,223<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 24.61
\nEvaluated at bid price : 24.87
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n
EMA.PR.C<\/td>\nFixedReset Disc<\/td>\n75,130<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 18.15
\nEvaluated at bid price : 18.15
\nBid-YTW : 5.90 %<\/td>\n<\/tr>\n
TRP.PR.C<\/td>\nFixedReset Disc<\/td>\n55,963<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 11.45
\nEvaluated at bid price : 11.45
\nBid-YTW : 6.34 %<\/td>\n<\/tr>\n
TRP.PR.J<\/td>\nFixedReset Prem<\/td>\n40,245<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-05-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.01
\nBid-YTW : 3.30 %<\/td>\n<\/tr>\n
RY.PR.M<\/td>\nFixedReset Disc<\/td>\n37,655<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 18.70
\nEvaluated at bid price : 18.70
\nBid-YTW : 5.42 %<\/td>\n<\/tr>\n
There were 39 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
TRP.PR.D<\/td>\nFixedReset Disc<\/td>\nQuote: 15.48 – 15.99
\nSpot Rate : 0.5100
\nAverage : 0.3421<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 15.48
\nEvaluated at bid price : 15.48
\nBid-YTW : 6.18 %<\/td>\n<\/tr>\n

IAF.PR.B<\/td>\nDeemed-Retractible<\/td>\nQuote: 21.87 – 22.53
\nSpot Rate : 0.6600
\nAverage : 0.5504<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.87
\nBid-YTW : 6.30 %<\/td>\n<\/tr>\n

GWO.PR.N<\/td>\nFixedReset Ins Non<\/td>\nQuote: 13.89 – 14.32
\nSpot Rate : 0.4300
\nAverage : 0.3224<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2030-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 13.89
\nBid-YTW : 9.48 %<\/td>\n<\/tr>\n

CU.PR.F<\/td>\nPerpetual-Discount<\/td>\nQuote: 21.35 – 21.79
\nSpot Rate : 0.4400
\nAverage : 0.3325<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 21.35
\nEvaluated at bid price : 21.35
\nBid-YTW : 5.33 %<\/td>\n<\/tr>\n

MFC.PR.O<\/td>\nFixedReset Ins Non<\/td>\nQuote: 25.65 – 25.95
\nSpot Rate : 0.3000
\nAverage : 0.1971<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2021-06-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.65
\nBid-YTW : 4.16 %<\/td>\n<\/tr>\n

CM.PR.S<\/td>\nFixedReset Disc<\/td>\nQuote: 17.80 – 18.15
\nSpot Rate : 0.3500
\nAverage : 0.2493<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2049-10-01
\nMaturity Price : 17.80
\nEvaluated at bid price : 17.80
\nBid-YTW : 5.61 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Schwab is eliminating brokerage commissions: Discount brokerage Charles Schwab Corp said on Tuesday it is eliminating commissions for online trading of stocks, ETFs and options listed on U.S. or Canadian exchanges. Schwab\u2019s latest move is …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-50871","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50871"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50871\/revisions"}],"predecessor-version":[{"id":50872,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/50871\/revisions\/50872"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}