Buy Side Has Concerns About Commission Aggregation Consolidating Information in One Place

Commission aggregators want to consolidate buy-side commissions in a single place to pay research providers. Are institutions comfortable sharing the data with a single provider? By Ivy Schmerken The world of commission management is becoming more complicated as the buy side increasingly establishes client commission agreements (CCAs), or commission sharing agreements (CSAs), with multiple brokers and looks to expand these programs into trading international stocks, options and futures. "People are opening up five, six and seven of these accounts with core brokers, and it's an administrative challenge," says Mike Plunkett, president of Instinet North America. "No one wants to manage seven CSA accounts with seven brokers." Instead of asking the buy side to use individual Web sites to manage each CCA, the new trend is... [read full story]