A bill introduced in the Ohio Senate would require all Ohio state retirement systems to use only Ohio-based financial institutions for custodial services. The systems would also have to execute at least 60% of equity trades, based on commission dollars, with Ohio brokers on a pre-approved list; 10% of that would have to be executed with minority-owned or -controlled firms.
The bill would also require details of soft-dollar, or directed brokerage, relations be disclosed to the Division of Securities in the state Department of Commerce, and it mandates certain ethical disclosures of the systems' employees.
The bill, introduced by Sen. Louis W. Blessing, R-Cincinnati, will be taken up by the Senate Ways and Means Committee when the state Legislature reconvenes after elections in November, said Dan Reinhard, legislative aide. He said the process for approving brokerage firms still has to be worked out.