At its Investment Adviser Forum on February 20, 2014, partners from law firm Katten Muchin Rosenman LLP addressed a series of legal issues that regularly arise in connection with trading by hedge funds with reasonably liquid strategies.  Those legal issues include fiduciary duty, best execution, soft dollars, principal trades, agency cross trades, cross trades and trade errors.  Forum participants defined these terms as they apply to hedge fund trading strategies and identified legal best practices with respect to each of them.  This article relays the key points from the forum.