Markit Partners With Agency Based Broker on Commission Management

U.K.-based agency broker Hobart Capital Markets has partnered with Markit to provide a commission management solution for buy side customers who wish to direct commission-sharing agreement (CSA) related trades via an independent ‘execution-only’ broker.

The arrangement enables buy side customers to adopt a ‘one-stop’ solution, allowing them to direct CSA related trades to Hobart’s execution platform, while reconciling those trades, along with the tracking of commission flows and management of third party payments, in a single location.

Simon Gamse, partner at Hobart, said: “With a robust infrastructure and secure IT capability, customers can take advantage of Hobart’s UK and European execution capabilities and leverage Markit’s Commission Manager platform in order to manage and allocate commission credits efficiently. This allows customers to execute trades via Hobart and track and manage commission payments via Markit, safe in the knowledge they have adhered to best practice.”

Hobart’s technology includes sophisticated smart order routers and up-to-the-minute algorithmic trading engines, allowing the firm to manage customer orders, assist in price discovery and access liquidity, while maintaining trade anonymity and minimizing market impact.

Markit Commission Manager enables the buy side to maintain credits with their brokers and use these credits to pay for research, execution and other permissible third party services.