Hong Kong's securities brokerages are bracing for more consolidations in the coming months, according to international on-line brokerage TD Waterhouse chief executive Stephen McDonald. 'In most markets, the concentration is already well, well ahead of Hong Kong,' he said. In the United States, about 83 per cent of on-line securities trading was dominated by six brokers, he said. In Canada, the top four brokers handled 85 per cent of on-line trades, or 45 to 50 per cent of total retail trading, he said. The Hong Kong securities market was still very fragmented, with more than 600 brokers conducting about 100,000 trades a day, Mr McDonald said. 'No one seems to have a commanding market share, and no one has really established a Net presence of any significance,' he said. 'The system is not entirely efficient and there is lots of room for consolidation,' he said. The high cost of building up Net capacity would also push small operators into consolidation, he said, leaving the market with a 'lot less brokers'. TD Waterhouse, the world's second-largest on-line broker, acquired Hong Kong brokerage Harvester Securities to obtain a stock exchange seat in June. The firm started its SAR operation last month, the first international on-line player to do so. Mr McDonald said the firm planned to launch its Web and wireless trading products in April. Some brokers said they did not expect the firm to grab a substantial market share as the 0.25 per cent minimum commission rate could limit competitive pricing. But Mr McDonald said TD Waterhouse had products traditional brokerages did not offer.