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Trump presidency could boost trading activity, says TD Ameritrade CEO

The equity market rally that followed Donald Trump's victory in the U.S. presidential election has started to lose steam, but TD Ameritrade Holding Corp. President and CEO Timothy Hockey expects more trading activity under the new administration.

The November 2016 election results boosted trading and asset gathering at TD Ameritrade, contributing to strong organic growth during its fiscal first quarter, Hockey said during an earnings call.

The company reported net new client assets of $18.7 billion in the fiscal first quarter, up from $15.1 billion in the linked quarter and $17.5 billion in the year-ago quarter. Average client trades per day were 486,801 during the quarter ended Dec. 30, 2016, compared with 444,281 a quarter earlier and 438,108 in the year-ago period.

Hockey said November 2016 saw a meaningful increase in trading as non-active traders re-engaged with the markets to consider the potential impact of the U.S. election results, but activity dwindled just a month later as traders finished repositioning their portfolios. But the CEO is optimistic that trading activity will increase as market conditions become more volatile.

Hockey said Trump's Twitter activity presents potential trading opportunity for TD Ameritrade clients, noting that each tweet from the soon-to-be president could send stocks soaring or falling.