Commentary

Traders Magazine Online News

Spoofing, Surveillance and Supervision

Jay Biondo, Product Manager - Surveillance at Trading Technologies, co-authored an article along with James Lundy and Nicholas Wendland, both of Drinker Biddle & Reath LLP, reviewing the CFTC's regulations and expanding efforts, 21st century surveillance and supervision, as well as strategic recommendations.

Traders Poll

Is the adoption of electronic trading in fixed income on par of that in the FX sector?




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February 1, 1998

New Soft-Dollar Standards Proposed

By Staff Reports

The Association for Investment Management and Research (AIMR), a Charlottesville, Va.-based non-profit trade group, has released a proposed set of soft-dollar standards for its buy-side members.

The standards, developed by a blue-ribbon task force of industry leaders convened by the trade group, are open to public comment until Feb. 28.

Understanding

These standards include the creation of a common understanding of soft-dollar issues by providing definitions of major terms; and requirements that the content of research purchased with client brokerage directly assist an investment manager in his decision-making processing, and not in the management of the firm.

Also included in the standards are a clarification of an investment manager's responsibility to justify the use of client knowledge to pay for a portion of mixed-use products.

Disclose

The standards require AIMR members to disclose certain information with regard to soft dollar practices; uniform record keeping; and clarification of an investment manager's real and fiduciary responsibilities to his client, including the client-directed brokerage area.

These responsibilities cover the client-directed brokerage area.