SEC Chairman Cox has asked Congress to repeal or substantially alter Section 28(e) of the Securities Exchange Act of 1934. Section 28(e) provides money managers and Broker Dealers with the safe harbor under which soft dollars facilitate the purchase of research and execution services.
The STA reiterates its position in favor of soft dollar arrangements and advocates the retention of Section 28(e) soft dollar arrangements. STA has taken the two following steps in support of this position:
1. We have prepared a letter for use via the STA Traders Advocate: Soft Dollar Letter
2. We have provided members of Congress with the attached information sheet allowing them a greater understanding of the significance of the use of soft dollars for improved research: Soft Dollar Information Sheet
We invite your support by following the instructions on our Traders Advocate page, which will facilitate communicating with your representatives in support of the retention of this important resource.
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