Broker-Dealer Analytics

New York City is the primary hub, with 768 unique firms, over four times more than the second-ranked city, Chicago (160). New York is also the largest incubator of new firms (2,328 vs. CA 1,005).

The industry shows a consistent annual churn rate of approximately 6-8% from 2021-2025. In 2023, 121 new firms entered while 144 departed, a net loss of 23 firms (7.2% churn).

Average lifespan for defunct firms is 6.09 years. For 2010 cohort: 76.4% survived 5 years, 53.3% survived 10 years, and 44.7% survived 14 years.

Analysis of company names reveals a shift towards integrated capital management, advisory, and financial services, beyond traditional brokerage. Most common terms include SECURITIES, CAPITAL, FINANCIAL, PARTNERS, ADVISORS.

A significant technical shift occurred in 2022-2023, with a complete transition from UTF-8 to UTF-16 file encoding for SEC filings, indicating modernization of data systems.

Less than half of firms survive beyond 14 years. A core group of highly persistent firms (19+ years active) contrasts with short average lifespans, indicating significant market pressures.