Free Site Registration

Soft Dollars Are Targeted

Traders Magazine, February 2004

Gregory Bresiger

Soft dollars and directed brokerage would be ended under the provisions of a comprehensive mutual fund fees reform bill, which was recently introduced in the U.S. Senate. "Soft dollars distort the markets both in trade executions and products and services purchases because there is little or no meaningful price negotiation or competition in these areas," according to S2059 sponsor Sen. Peter Fitzgerald (R-Illinois). Fitzgerald, who is also pushing in this bill for the elimination of 12b-1 fees, complains the distortion comes because brokerage costs are not included in the mutual fund expense ratio.

Get access to this article and thousands more...

All articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.

Already Registered?