FactSet podcast addresses changes in soft dollar programs and the impact of consolidation

FactSet’s most recent podcast episode takes on the topic of how commission management and commission arrangements have changed since 2006, as well as the overall trends in the way firms get their research. Wiseman also discusses the confusion that has arisen as to how to define which research classifies as “soft:”

“It’s more of a confusion that arises between third party research and what we call proprietary research…I think money managers, investment managers like to make a distinction between the two and it’s very much a false distinction.”

Wiseman discusses the lack of major, sweeping change that occurred after 2006, but does address one interesting result of the SEC’s guidance on Client Commission Arrangements,

“Since there are now these more clearly defined research pools or this new definition of a CCA, there is a greater push by some of the money management firms to actually no longer use the trading desks of those small to mid tier firms or these boutiques to generate commissions...it has forced some of these shops…to put a cash value on their research.”

Listen to the full interview to hear Wiseman’s further discussion of how smaller firms have been impacted by changes in CCA programs and what other changes he sees ahead. You can listen on the web, or in iTunes, or read the full transcript.

FactSet’s goal is to provide our users and the public with perspectives and insights into the topics that drive financial markets. Through our podcast series, we offer a range of interviews with experts both from inside our company and from among our clients and partners. Subscribe to our podcast in iTunes to receive new episodes throughout the month.