Already Shearson is taking a much tougher line, reducing commissions to its brokers for the first time in 15 years.

But they also had learned to be more efficient, eliminating frills, reducing commissions to travel agents, reaping savings from automatic check-in.

In Canada, many companies are moving toward reducing commissions that now equal 75 percent of the first year's premium.

As the airlines have reduced commissions in recent years, many agencies have started charging their customers service fees.

In recent years, hundreds of small travel agencies have gone out of business as airlines sharply reduced commissions.

But it was not until the mid-1980's that cost-conscious clients began reducing commissions en masse, creating something of a panic in the industry.

Before the airlines began reducing commissions in 1995, agents received 10 percent of the domestic fare without any cap.

It is no accident that the airlines began reducing commissions in 1995, just when the Internet was beginning to take off.

By matching buy and sell orders within the firm's order book, the overall quantity of stock to be traded can be reduced thus reducing commissions.

Such a move would reduce fees and commissions for agencies.