The 300 reps with specialty independent broker-dealer, brokersXpress LLC, were told on Wednesday that their firm will closed for business. The reps have been given 90 days to relocate.
Thebrokers were told the news at 5:00 EST on a company conference call.
Barry Metzger, CEO of brokersXpress, did not comment on the closing of the B-D. A spokesperson for Schwab confirmed the planned shut down, however.
It is not yet clear why the firm is being shuttered.
The Charles Schwab Corp. last year bought optionsXpress Holdings Inc., the parent company of brokersXpress, which offers a specialized platform for options trading.
Broker-dealers typically consolidate after mergers in order to cut expenses.