Bank of New York Executive Says Soft-Dollar Commissions Provide Vital Support for Independent Research.Business Editors WASHINGTON--(BUSINESS WIRE)--March 31, 2004 A senior executive of The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. today called for the continued use of commissions to support the growth of independent research. Testifying before the Senate Committee on Banking, Housing and Urban Affairs, Joseph M. Velli, senior executive vice president of The Bank of New York and head of BNY BNY Bank of New York Securities Group, said the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " created for equity research by Congress in 1975 fosters competition among research firms and money managers, benefiting the investing public. Soft dollars are the method of including payment for research in the trading commission whether the research is produced by a division of a full-service investment banking firm or by an independent research firm. "Research creates the idea that generates the trade. Expert research has always been paid for with commission dollars, which reflects a natural alignment of ideas generated and compensation for those ideas," Velli said. "Current proposals calling for enhanced, reasonable disclosure will better allow the asset manager to judge the value of the research, lead to greater use of independent research and help restore investor trust." As the largest global agency brokerage and leading aggregator of independent research, BNY Securities Group is uniquely positioned to comment on the value provided by soft dollar arrangements. "Any proposal to treat independent research differently from proprietary research would simply be unfair," Velli said. "If we are to ban anything, let's ban the term 'soft dollars.' Let's call them what they are, 'Research Commissions,' and let's encourage their use for the benefit of investors." A complete text of Velli's testimony will be available at www.banking.senate.gov. BNY Securities Group is the global agency brokerage, clearing and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. sector of The Bank of New York Company, Inc. It provides institutions, broker-dealers and corporations with a broadly diversified suite of services and "The Power of Choice" through multiple business models. Through its broad range of businesses, BNY Securities Group offers creative solutions in trade execution, commission management, independent research, securities clearing and financial services outsourcing. BNY Securities Group is the largest provider of commission management services, has 26 New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. seats, and offers global execution and clearing services in over 80 markets with offices in the U.S., Europe, Asia, and Australia. BNY Securities Group is an organization consisting of several broker-dealers and other companies. The Bank of New York Company, Inc. (NYSE NYSE See: New York Stock Exchange : BK) is a global leader in securities servicing for issuers, investors and financial intermediaries Financial intermediaries institution that provide the market function of matching borrowers and lenders or traders. . The Company plays an integral role in the infrastructure of the capital markets, servicing securities in more than 100 markets worldwide. The Company provides quality solutions through leading technology for global corporations, financial institutions, asset managers, governments, non-profit organizations A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. , and individuals. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and has a distinguished history of serving clients around the world through its five primary businesses: Securities Servicing and Global Payment Services, Private Client Services and Asset Management, Corporate Banking, Global Market Services, and Retail Banking. Additional information on the Company is available at www.bankofny.com. |
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