MIK Fund Solutions, a leading provider of software solutions for hedge funds, today announced the release of a comprehensive and integrated broker tracking system for hedge funds and asset managers. The offering is designed as a suite of applications for the tracking and reporting on hard and soft dollar commissions (Commission Tracker), sell-side research services and event access tracking (Event Tracker), and the periodic rating of all brokers that drives future commission allocations (Broker Vote). The functionality is delivered in one integrated application, but the components can also be used separately.
By deploying the full application, MIK clients obtain a sophisticated view into all of the interactions with their execution and research brokers, thereby creating a powerful analytic tool for managers to monitor, measure, and evaluate broker performance across a customized array of categories, defined and chosen by the fund.
As hedge funds and asset managers come under more regulatory requirements, there is a mandate to justify and rationalize broker utilization. Through broker event tracking and commission data capture, sell-side meeting and execution information across multiple periods is automatically and easily retrieved. Such data and analysis is essential to the broker rating process, and is integral in assessing future allocations of execution and research dollars.
As a commercial proposition, the ability to view broker commission data across regions, asset types, commission rate types, etc., enables managers to have critical information about how closely commission payments for the current period are adhering to the most recent broker ratings from the last Broker Vote. The application provides detailed reporting, trend charting, alerts and other tangible measures to assist in the clientâs periodic review process.
In addition, managers have the opportunity to open dialogues with brokers based on ranking, rating and total commission scales.
Said Marshall Saffer, Chief Operating Office of MIKFS: "Basic data collection and retrieval is no longer sufficient for hedge funds or asset managers in todayâs complex trading environments. Rather, firms now demand, as next stage thinking, the ability to use data in a comprehensive and integrated way, tied to the investment thesis and designed to assist in management of the firm. MIKâs commission and broker suite of applications works a firmâs data not only to meet regulatory requirements but to help managers in the entire range of relationships with brokers as a whole and with each individual broker they select. It makes the relationship between firms and their brokers equal and provides a means to engage brokers based on analysis.â