The trading relationship between the buy-side and the sell-side continues to change due to more accessible liquidity, increased technology advances and shrinking commission pools to go around.

As new hedge funds crop up, their need for a global, multi-asset broker becomes greater, and, as a result, the services provided by their brokers is becoming more sophisticated and complex, according to a report, "Institutional Equity Trading in America in 2006: The Return on Relationship," by the TABB Group of Westborough, Mass. The financial market research firm interviewed 61 head traders at traditional asset management firms with aggregate assets of nearly $10 trillion.

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