TD Ameritrade closed Monday on its $4 billion purchase of Town and Country-based Scottrade Financial Services, a deal that will result in up to 1,000 fewer jobs in the St. Louis area in the coming months and an eventual end to the Scottrade name, including at the downtown venue that serves as the home of the St. Louis Blues hockey team.
Omaha, Neb.-based TD Ameritrade will convert Scottrade accounts to TD Ameritrade accounts in early 2018.
TD Ameritrade President and CEO Tim Hockey said he expects that of 1,800 current Scottrade jobs in the St. Louis area, the company will employ between 800 and 1,000 next spring locally.
Companywide, Scottrade had more than 3,700 employees at the time the acquisition was announced last October.
A price war among online brokerages in recent months is contributing to the job losses. TD Ameritrade lowered its price from $10 a trade to $7 a trade to better compete with rivals.
“When you see a fairly significant amount taken out of revenue, you take a closer look at expenses,” Hockey told the Post-Dispatch in a phone interview Monday.
Hockey was in St. Louis last week talking to Scottrade employees and St. Louis area economic development officials about TD Ameritrade’s future plans. The company will keep an investor service call center with between 500 and 600 jobs in the same building at 700 Maryville Centre Drive that currently houses its Town and Country headquarters.
In another location that was not disclosed, TD Ameritrade will have an IT office with between 100 and 200 employees.
Opportunities exist for TD Ameritrade to grow its IT staff in the St. Louis area, Hockey said. “Most of our existing buildings elsewhere are full or filling up,” he said. “There might be some opportunities going forward. St. Louis is really a great place for our organization to continue to have a major operating center.”
TD Ameritrade’s acquisition of Scottrade creates a brokerage service firm with 11 million client accounts holding $1.1 trillion in assets.
Rodger Riney, Scottrade’s founder and CEO, is now special adviser to Hockey, effectively immediately. Riney will remain based in St. Louis, the company said, in addition to Scottrade executive Peter deSilva, who was named president of retail distribution.
Scottrade, which has more than 3 million accounts, was founded by Riney as Scottsdale Securities in Scottsdale, Ariz., in 1980. A year later, Riney opened the company’s second branch in the St. Louis area and Riney relocated the headquarters to St. Louis County in 1985. The company was renamed Scottrade in 2000.
With the acquisition, TD Ameritrade bolsters its client roster and adds Scottrade’s large branch network. Scottrade has about 500 branch offices and TD Ameritrade has about 100 branches. The branch network will be much smaller than it is currently, but Hockey said the company is still evaluating branch closures.
The Scottrade name will ultimately be phased out, including at the Scottrade Center downtown. In October, TD Ameritrade initially said the arena’s name will be changed to TD Ameritrade Center — the contract for the naming rights runs through 2021 — but the company is no longer pursuing renaming the center after TD Ameritrade, Hockey said.
“It doesn’t make any sense to continue with the TD Ameritrade brand (on the arena), so we’ll sell it back,” Hockey said. No changes to the arena’s name are expected before 2018, he said.