The Company said it has significantly enhanced its CommTrakâ¢ online system, providing money managers with the ability to control all commission spending regardless of broker, venue or asset class, including swaps, derivatives, options, futures and foreign exchange, in addition to equity and fixed income trades.
âThis breakthrough provides money managers and their clients with unprecedented
transparency over where and how every commission Dollar, Pound, or Euro is spent,â said Robin Hodgkins, President of Cogent, a leader in commission management. Cogent has 60 clients, which in the aggregate manage $5 trillion in assets, running 100 online commission management solutions around the world.
Mr. Hodgkins said CommTrakâs new capabilities were particularly relevant as increased automation of all major types of trading is leading proprietary trading desks, hedge funds and traditional asset managers to employ a wider variety of financial instruments. At the same time, clients are demanding increasing transparency on commission spending.
One key to enhancing CommTrak was the creation of a data transformation engine that can convert trading data from any platform, database, or spreadsheet into a common file format. The other was software that enables money managers to input synthetic commission rates for any asset class where commissions are implicit, such as swaps, versus assets where commissions are explicit, such as equities.
Using CommTrak, buyside traders and portfolio managers can employ any of 70 built-in filters, featuring industry standard formulas and formats, to analyze and report on the results on a firm-wide or individual account basis. Users can save filter settings for future use. Data can be exported to Excel. Online delivery facilitates access by authorized users around the world.
âAs part of our R&D, we surveyed the industry,â said Mr. Hodgkins. âIt is truly amazing how difficult it is for a buyside firm to track how much is really being spent on Wall Street brokers. And if a buyside firm does compile this data, it is done manually, copying parts of reports into Excel spreadsheets, with little drill down detail and flexibility of analyses.
Consequently, this has become a big issue.â Mr. Hodgkins said that CommTrak complements Cogentâs industry leading ResearchTrakâ¢ and HedgeTrakâ¢ online broker review systems. âCommTrak tells you --with precise detail where your commission dollars are being spent. ResearchTrak helps you decide on a consistent and repeatable basis whether you are getting the best bang for