Commission Sharing Agreements

Over the years, both brokers and investor firms are looking for ways to make more from the invesment business they execute. Brokers are keen to attract trading volume from new clients and to strengthen their trading relationships with existing clients. One way both sides can do this is to make better use of commission sharing agreements (CSA). To find out how you line up against your peers contact MPI Following the demise of Lehman Brothers in September 2008, investor firms looked to widen their range of CSA brokers to reduce dependency on individual brokers - an opportunity for brokers. In addition to the credit risk advantages, investor firms are looking to realise the efficiency gains to be made and research costs that can be reduced and mitigated.

Benefits of improved CSA process

Since no two firms requirements are exactly the same, MPI Europe have developed a toolkit approach with a mix of skills, experience and tools to address the multiple requirements and help you with your broker review, analytical and CSA implementation requirements. The toolkit includes a mix of templates processes, approaches and documents, delivering benefits such as:

  • Let you cope with growing CSA volume and complexity without adding costs
  • Replace error prone manual processes such as spreadsheet based reconciliations
  • Ensure you meet governance/regulatory requirements with confidence
  • We can help you in a range of ways from running a workshop to understand your CSA challenges at a high level through to implementing a complete solution with our software alliance partners. Recently we have worked with partners to help them develop their modular solutions in this area.

    Global Broker case study

    MPI Europe has been engaged by a global broker with offices in the US, Europe and Asia, to provide a solution for their combined unbundling, commission sharing and "softing" requirements. Our team defined a full set of business requirements for the intended solution, as well as implementing immediate improvements in the current business process.

    As part of this exercise, we were closely involved with a wide range of internal departments including front office, settlements, finance and legal/compliance and also with external discussions with other brokers, clients and fund managers. These business requirements have fed through a package selection into the full implementation and user acceptance testing which we also ran for the client prior to the solution going live.

    Just get in contact so we can start help implement a solution to your broker review and commission sharing issues.

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