In April 2003, the North American Securities Administrators Association (NASAA), the U.S. Securities and Exchange Commission (SEC), National Association of Securities
Dealers (NASD), and the New York
Stock Exchange (NYSE) announced the settlement of enforcement actions involving conflicts of interest
between the research and investment banking operations of the nation's 10 top investment firms.
In April 2003, the North American Securities Administrators Association (NASAA), the U.S. Securities and Exchange Commission (SEC), National Association of Securities
Dealers (NASD), and the New York
Stock Exchange (NYSE) announced the settlement of enforcement actions involving conflicts of interest
between the research and investment banking operations of the nation's 10 top investment firms.
In both instances, these services or products may include: company financial data and economic data (e.g., unemployment, inflation rates and GDP figures),
stock quotes, last sale prices and trading volumes, research reports analyzing the performance of a particular company or
stock, narrowly distributed trade magazines or technical journals covering specific industries, products, or issuers, seminars or conferences registration fees which provide substantive content relating to eligible research, quantitative analytical software and software that provides analyses of securities portfolios, trading strategies and pre / post trade analytics, discussions with research analysts or meetings with corporate executives which provide a means of obtaining oral advice on securities, markets or particular issuers, short - term custody related to effecting particular transactions and clearance and settlement of those trades, lines
between the broker -
dealer and order management systems operated by a third party vendor, dedicated lines
between the broker -
dealer and the investment adviser's order management system, dedicated lines providing direct dial - up service
between the investment adviser and the trading desk at the broker -
dealer, message services used to transmit orders to broker -
dealers for execution, electronic communication of allocation instructions
between institutions and broker -
dealers, comparison services required by the SEC or another regulator (e.g., use of electronic confirmation and affirmation of institutional trades), exchange of messages among broker -
dealers, custodians, and institutions related to a trade, post-trade matching of trade information, routing settlement instructions to custodian banks and broker -
dealers» clearing agents, software that provides algorithmic trading strategies, and trading software operated by a broker -
dealer to route orders to market centers or direct market access systems.
In both instances, these services or products may include: company financial data and economic data (e.g., unemployment, inflation rates and GDP figures),
stock quotes, last sale prices and trading volumes, research reports analyzing the performance of a particular company or
stock, narrowly distributed trade magazines or technical journals covering specific industries, products, or issuers, seminars or conferences registration fees which provide substantive content relating to eligible research, quantitative analytical software and software that provides analyses of securities portfolios, trading strategies and pre / post trade analytics, discussions with research analysts or meetings with corporate executives which provide a means of obtaining oral advice on securities, markets or particular issuers, short - term custody related to effecting particular transactions and clearance and settlement of those trades, lines
between the broker -
dealer and order management systems operated by a third party vendor, dedicated lines
between the broker -
dealer and the investment adviser's order management system, dedicated lines providing direct