DJ Carmichael, Montagu in merger talks

Stockbroking firms DJ Carmichael & Co and Montagu Stockbrokers have revealed they are in merger discussions, according to a report.

The Australian Financial Review reported today that Montagu was in talks with a number of firms, including DJ Carmichael which is 51 per cent owned by UK-based stockbroker WH Ireland.

The merger discussions come ahead of significant rule changes to be implemented by the ASX and staff cuts to several of Perth's brokers, AFR reported.

The newspaper reported that by the end of this year, brokers will have to boost their capital reserves from $100,000 to $2 million, and then to $10 million during next year.

Calls to both Montagu and DJ Carmichael have not been returned at time of publishing.