Political Power Broker
Traders Magazine, August 2001
There are signs the flow of cash into equity mutual funds that drove stock trading volume through most of the 1990s is slowing down. Money-market funds added a net $28.75 billion, during a one-week period in August, pushing total assets to $2.081 trillion. That's small in comparison to total stock mutual fund assets but it may be an ominous sign. At the same time, the latest round of SEC re-engineering is driving dealers inexorably towards a more full-blown agency market. Still, the confluence of these events may propel STA members to become more active in the SEC rule-making process. For if members do not become more active, the end may be in sight for some traders. This is not an irrational fear. It is both the tinker's curse and the blessing contained in Section 11A in the amended Securities Exchange Act of 1934, and it is an objective of modern securities regulation: The opportunity for investors, consistent with other market goals, to execute orders without dealer intermediation.
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