Financial industries are always in flux, and we often see old-world companies pushing aggressively to get into new markets. But lately we're seeing a few example of new-world companies pushing in the opposite direction.

A great example is PayPal, which has risen to become a leader in online payments. People were surprised to say the least when it announced that it will enter the market for offline payments as well, an old-world market dominated by established companies. Another example: Getco has made a big move into the specialists markets, by dint of its purchase of Bank of America's NYSE floor operations. The move will make it the second largest of the four remaining designated market makers (It's hard to believe now that the number of firms was once as high as the mid-30s).

The firm will now be making markets for nearly 650 companies and 850 securities. Getco has been a DMM since 2010 and served in that capacity on some big deals, such as GM's $20 billion initial public offering last November. The issue here is what Getco really wants out of this.

To be sure, floor-based specialists work is in decline. But it might be seen as a way of adding some volume to Getco's current automated  trade systems, which will be used on the floor. The real point may be to buy some credibility as a market maker, which will help it with its main trading business. But given that the market making stuff remains a very small part of the overall pie, in the end, it may be all about positioning and brand.

For more:   
- here's the Traders article about the deal announcement

Related articles:
GETCO launches high-frequency trading tool for institutions   
GETCO raises brows as a designated market maker