Commentary

David Weisberger
Traders Magazine Online News

Stop the BS & Promote Real Transparency!

In this shared blog, David Weisberger says a recent WSJ article is wrong and that traders do need to purchase faster and more comprehensive market data to avoid being fined for violating "Best Execution" obligations.

Traders Poll

Is information leakage a major concern of yours when you trade?



Free Site Registration

April 1, 2003

SIA Rakes NASD And the Big Board

By Gregory Bresiger

Two groups are going too far in trying to clean up the conflicts-of-interest problems in the analyst profession, according to one securities industry trade group.

The Big Board and the National Association of Securities Dealers missed the mark in trying to reform the role of analysts, the Securities Industry Association wrote in a recent letter to the SEC commenting on their proposals. The proposals are "ambiguous, problematic and contain numerous inconsistencies," the SIA wrote.

One of the SRO's reform analyst proposals calls for a certain kind of due diligence for investment banking clients. But that, SIA charges, will mean that compliance is difficult.

"Moreover," the letter continued, "the virtual ban on research supervisors from owning equity securities will discourage most qualified people from wanting to oversee research."

Spokesmen for the Big Board and the NASD declined comment.