Commentary

Steve Grob
Traders Magazine Online News

The Periodic Table

Fidessa's Steve Grob has written a response to Marcus Ferber writing to ESMA condemning periodic auctions. The blog strongly criticizes Ferber's approach, and looks at the problems behind the "lit is good and dark is bad" attitude.

Traders Poll

Do you think that NY AG Schneiderman's probe into crypto exchanges will curtail growth and trading?



Free Site Registration

July 27, 2005

SIA Opposes Brits on Unbundling

By Gregory Bresiger

(Traders Magazine, July 2005) -- The Securities Industry Association has "significant concerns" about the efforts of the United Kingdom's top regulator to break out soft dollar commissions.

"Some of our concern emanates from the general U.S. view that proprietary research is so integrated and interwoven with overall broker-dealer services that it cannot be effectively separated with a high degree of accuracy," wrote Ira Hammerman, general counsel for the SIA, in a letter to Britain's Financial Services Authority (FSA).

The FSA, in its Consultation Paper of May 5th, recommends that bundled brokerage and soft-dollar arrangements should be broken out.

But SIA argued that the "emphasis on unbundling may deflect investment manager and investor attention away from the more significant factors relating to the broker-selection process." SIA also noted that brokerage commission rates are at historically low levels.