NYFIX Inc. today introduced a Commission Management Programme that provides buy-side firms the ability to allocate commissions for trades executed via NYFIX to participating brokers as payment for research or other soft dollar services.
The move follows recent FINRA approval of the application by NYFIX’s broker-dealer subsidiaries to offer Client Commission Arrangements (CCAs), sometimes referred to as Client Sharing Agreements (CSAs), to their buy-side customers.
Clients who sign up for the program will be able to utilize NYFIX’s neutral and independent trade execution services without having to sacrifice existing relationships with trusted research providers. As a result of this online service, each client will have the ability to fully customise its accounts, allowing for the adjustment of a number of parameters including remittances, reports and budget forecasts.
“Increased demand for transparency related to commission allocation, coupled with rising trade volumes, an abundance of independent research, and the potential unbundling of research and execution costs, all indicate that the time is right for NYFIX to introduce this program,” says Zoe Boza, senior vice president of the Commission Management Group, NYFIX, Inc.