Hedge Funds

MFA urges SEC to allow soft dollars for post-trade analytics

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The Managed Funds Association has urged the U.S. Securities and Exchange Commission to broaden a proposed staff interpretation for what products and services can be paid for using soft dollars.

The SEC recently requested comments on a staff interpretation that would restrict the use of soft dollars to pay for post-trade analytics. Soft dollars refer to the practice of using client assets to pay brokerage firms for brokerage and other services - such as equity research - through commission revenue, rather than through direct payments.

In a November 29 letter to the Commission, the MFA argued that post-trade