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July 27, 2005

Traders Bemoan: Compliance Headaches

By Gregory Bresiger

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(Traders Magazine, July 2005) -- Paging trading compliance pros. This is your kind of market. Potential regulatory problems today worry buyside traders as never before. That's according to a new study by Tabb Group, a Westborough, Mass.-based consultant to the securities industry.

The study also pointed to two other major concerns among the 53 buyside traders it interviewed: fragmentation and liquidity. The one surprise in the study? Market structure dropped far down on the list of buyside concerns.

"When asked what the largest change in their role was over the past year, 32 percent of all

firms mentioned compliance," according to the annual report, "Institutional Equity Trading in America: A Buy Side Perspective."

"Compliance is the big buzz word today," said Benjamin Sylvester, an equity trader and managing director at Boston-based Babson Capital Management. Sylvester was a participant in the survey.

Compliance was the number one category in the study, which asked traders about the biggest change they have seen over the past 12 months. Trading technology and assets under management were the next most commonly mentioned topics, with each registering at 19 percent of respondents.



"Compliance is the big buzz word today."

Benjamin Sylvester, Babson Capital Management