Commcise, the award-winning provider of integrated commission management solutions for investment management firms, and ITG [NYSE: ITG], a leading independent broker and financial technology provider, today announce that their research payment and management technology solutions have been integrated to provide a seamless end-to-end MiFID II research solution.
The solution allows asset managers to administer the complete research management process from trade unbundling, reconciliation, budgeting, vendor due diligence and invoice management, research consumption tracking, research evaluation (aka broker vote), research accounting by desk/strategy, RPA custodial aggregation and reporting, all with a single front-to-back audit trail and integrated workflow.
Under MiFID II, due to come into effect on 3 January 2018, asset managers will be required to be more rigorous in managing their research spend and have robust processes in place to evidence this. Commcise and ITG can help asset managers with every aspect of these regulatory requirements, including ensuring all trading activity is unbundled from research fees and evidencing a fair-allocation of research charges to fund level.
Using transactions to pay for research, whilst additionally managing budgets at a desk/strategy/fund level, introduces new complexities for asset managers. Given the short timeline to comply, most firms are considering a process to address these new complexities. The Commcise/ITG solution looks to address this difficult challenge more holistically. Commcise tracks and manages budgets at a desk/strategy or fund level. Where research is managed at a desk level, Commcise automatically pro-rates all research funding and research consumption down to fund-level using daily accounting data to manage more granular fund-level research charges that have been communicated to clients. Commcise calculates fund-level rebates in real time and delivers these instructions to ITG for repayment back to a given client.
Amrish Ganatra, MD at Commcise said “We are very pleased to announce our latest integration with ITG, a market leader in the provision of investment solutions and RPA custodial aggregation services. This is further evidence of the open nature of our platform.” He added, “Commcise are focused on delivering world-class solutions to our clients and this integration with ITG allows firms to manage the end-to-end process in a simple way. Through our combined technology offering, industry expertise and global network, we help asset managers evidence compliance with the MIFID II regulations today”.
Jack Pollina, MD at ITG, commented “This integration with Commcise enhances the value of our comprehensive research payment account solution. With MiFID II fast approaching, investment firms need to rethink their research spend processes and ensure what they have in place is compliant with the new regulations. By collaborating with key partners like Commcise, we can help clients have the best end-to-end solution, meeting their investment research needs as well as their regulatory obligations.”
Commcise offers independent, fully-integrated commission management solutions to the buy-side, sell-side and research providers. Commcise Buy, our award-winning cloud-based commission management platform is designed from the ground up to meet the specific needs of investment managers. Commcise Buy is the market-leading software solution helping asset managers to evidence end-to-end compliance with the latest MiFID II regulatory requirements. Commcise Buy provides automated trade reconciliation, algorithmic rules engine, invoice management, research evaluation / broker vote, consumption tracking (including an automated research valuation engine), commission budgeting, research accounting and reporting in a single fully-audited solution.
Built on the same technology stack as our award-winning buy-side platform, Commcise Sell is a cloud-based commission management platform for the sell-side. Commcise Sell allows executing brokers to transparently manage research commissions on behalf of their buy-side customers in a regulatory compliant manner. Whilst fully supporting the management of CSAs, Commcise additionally supports management of research payment accounts (RPAs) funded by transactions or by the accounting model. By providing a fully-audited and controlled platform that includes our industry-leading algorithmic rules engine, invoice management, research accounting and reporting in addition to white-labelled portal, Commcise Sell can allow brokers, research providers, custodians, fund accountants or any RPA administrator to manage commissions in any level of granularity and as demanded by their customers.
Commcise was founded by buy side industry professionals, with founding members including the partners of a leading Investment Technology consulting firm who have in-depth experience of implementing complex global technology solutions for asset management firms. With over 200 buy-side and sell-side clients globally, Commcise’s clients include some of the largest institutional asset managers, hedge funds and brokers in the world.
Investment Technology Group (NYSE: ITG) is a global financial technology company that helps leading brokers and asset managers improve returns for investors around the world. We empower traders to reduce the end-to-end cost of implementing investments via technology-enabled liquidity, execution, analytics and workflow solutions. ITG has offices in Asia Pacific, Europe and North America and offers execution services in more than 50 countries.