The financial information provider and agency-only brokerage based in London have come together to provide Hobart's buy-side customers, which range from mutual funds to Delta One desks, a new solution for managing direct commission sharing agreements (CSAs).
The new arrangement will employ Markit's Commission Manager to direct CSA-related trades to Hobart's execution platform, reconcile those trades, and track commission flows–known as credits–and third-party payments in a single location. Unbundling broker commissions through 'virtual' fee aggregation platforms has become a higher priority for the UK's Financial Conduct Authority (FCA) and is likely to be included with new requirements under MiFID 2 rules.
“Customers can now 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," says Simon Gamse, a partner at Hobart.
Bill Murphy, CTO of Blackstone, once again joins the podcast to discuss the private equity firm's new offices, designed to house its innovations team.Subscribe to Weekly Wrap emails