THE NEWS WRAP: Small stockbroking firms set to be squeezed

The major banks should have their phones tapped to detect any price signalling, a Sentate inquiry has been told.

In a submission to the inquiry, which is looking into the issue of competition in the banking sector, associate professor Frank Zumbo of the University of NSW says that the ACCC should “formally monitor” the banks to ensure they don’t collude on interest rate hikes.

Small stockbroking firms set to be squeezed

Small stockbroking firms could be forced out of business following a decision by Bank of America Merrill Lynch. The company has confirmed that it will no longer clear and settle trades on behalf of small and medium-sized brokers.

The move is likely to put pressure on small firms that have used third parties to clear their own transactions. 

Microsoft to bring back web tracking block

Microsoft is to re-introduce a feature that will allow consumers to stop businesses tracking their online movements. The software giant said that the next version of its browser, Internet Explorer 9, will give users the option of blocking websites from gathering information on them.

Overnight

The Australian dollar was flat at 97.96 US cents while the Down Jones industrial average rose by 6.70 points to 11,365.86.