An argument has long smoldered in Wall Street over the tight rules that restrict membership in the clubby New York Stock Exchange. Mutual funds, insurance companies and other institutional investors cannot join. Naturally they are resentful because they 1) account for well over half the trading volume on the exchange, and 2) pay some $800 million a year in commissions to member brokers on their trading. The institutions have become all the more displeased because brokerage houses in recent years have started their own mutual funds and now have about 70 of them. The brokerages collect commissions when they...
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