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The Wall Street Rule is not viable, however, for those institutions employing a passive index strategy: approximately 10% of all institutional equity assets.
The market value of electronics and electrical equipment issues held by institutions rose 15.8percentto to $63.8 billion, as the next-largest sector of institutional equity investments.
"Traditional institutional equity trading is an extremely expensive and inefficient process," Mr. Wheeler said.
"It's the Fed's quantitative easing," said Nandan Chakraborty, managing director of institutional equity research at Mumbai's Enam Securities.
"The market has had a big move and the jobless numbers weren't good," said Jay Suskind, head of institutional equity trading at Ryan Beck & Company in New Jersey.
Cantor Fitzgerald will split off its original business of person-to-person sales to focus on more profitable activities like institutional equity sales and trading.
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The Chase Manhattan Corporation said yesterday that it had hired Steven Black as head of institutional equities.
John Havens, 44, will become head of worldwide institutional equities, replacing Mr. Pandit.
Ryan was employed at Credit Suisse as a Director in the institutional equities group.
Mr. Bishop, 28, is an institutional equities salesman at Prudential Securities in New York.
Heads of institutional equities divisions at the investment banks are saying I can't afford to pay for research".
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