Broker/Dealer - Operations and Strategy
| CEO: TD Ameritrade to watch competitor's no-commission ETF move |  |
November 11, 2009 6:00 PM ET
By Samuel Spies
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TD Ameritrade Holding Corp. CEO Fredric Tomczyk commented on the recent move by a "competitor" to offer no-commission trading on its proprietary exchange-traded funds at an investor conference Nov. 11, saying the company will watch to see if it loses any clients as a result. "It's still too early to tell," the CEO told the audience. While he did not name the competitor, Charles Schwab Corp. on Nov. 2 announced the launch of its first proprietary ETFs, with the company providing commission-free online trading for clients. Tomczyk said he was not exactly sure how to read the move at this point and could interpret it in multiple ways. "They're a smart company, and they're an aggressive company, so I'm sure they know why [they are] doing it," Tomczyk said. Launching a new fund is not an unusual tactic for that company, Tomczyk said. "I think the real question is, you know, what's the effect on their client base, and who are they really after here?" "We're obviously watching the zero-commission impact on us," he said. "But if you're charging zero commission and no trailer on the ETF, and [you have] active traders going on in there, I'm not sure how you make money. That would be expensive." Tomczyk also discussed TD Ameritrade's deal appetite, saying the company continues to be on the lookout for acquisition opportunities. "There's nothing going on right now," he said. However, Tomczyk added, "We have been an aggressive consolidator, and we'll continue to have that stance." | 
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