Risky Business
Pension funds realize firing a money manager or a group of them can be expensive. They know there are plenty of trading costs and operational risks that accompany the implementation of new investment strategies, moving assets between investment managers. But no pension fund likes to get taken for a ride and overpay. Yet that is exactly what some pension funds feel has been happening-and some transition management pros agree. "We believe in our firm that the transition management community has not provided the solutions for plan sponsors," says Hari Achuthan, head of strategy and sales for transition management at Credit Suisse.
Traders Cheer Section 31 Cut
Trading costs just dropped a bit. Section 31 fees have been cut by the regulators some 50 percent, falling to $30.70 per $1 million of transactions on exchanges and OTC business.
Goldman Sachs Expands Its Research Payment Programs
Goldman Sachs, looking to bolster its third-party research program, set up a new business to house and market vendor-supplied research services. Called Hudson Street Services, the entity complements Goldman's Hudson 3RB, through which the firm promotes the research of hundreds of broker-dealers.
Human Beings Still Important at Citigroup
Electronic trading is sweeping the industry, but when it comes to illiquid stocks, human beings remain important at some of Wall Street's largest firms.
Specialist LaBranche Looks to Improve Algos
New York Stock Exchange specialist LaBranche & Co. plans to roll out more sophisticated algorithms for trading in the Big Board's hybrid environment.
Some are Wary of Leverage
Clearers and prime brokers should be careful of new, relatively small hedge funds with an investment charter that grants the manager lots of leeway. With the new portfolio margining rules about to be implemented, some of these funds could get riskier.
OTC Market Makers Get More OATS, New Rules
The NASD is expanding its rules for front-running in the OTC market.
The NASD is expanding its rules for front-running in the OTC market.
Buyside Looks to the After-Hours
The number of large blocks trading after the markets close is on the rise. Frustrated by the inability to execute large trades intraday, some institutions are turning to brokers to help them exit positions after the close.
Brokerage Insights from the FIX Answer Man
The business of consulting to brokerage firms is about to get a shot in the arm. That's the view of Jim Leman, who recently joined Westwater Corporation, a consultancy in the capital markets space. Leman is best known in Wall Street circles as one of the founders of the FIX protocol while at Salomon Brothers more than a decade ago. Leman and a handful of others paved the way for the electronic trading revolution, creating a common language for electronic communications.
