Fidelity’s call for trading cost itemization and subsequent pan on soft dollars could hit small firms hard, experts tell Reuters. And a smaller playing field could make the industry less competitive, they say.

While Fidelity, with $876.2 billion of assets under management, can afford to place trades without any research quid-pro-quo benefits, other firms are not as well equipped. "You’d find that a lot firms would cease to exist," Grady G. Thomas, president of Interstate Group, an independent research firm, told Reuters.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.