Convergex’s Westminster Research Associates Teams With Commcise For MiFID II Research Solution

Mar 15 2017 | 10:04pm ET

Convergex’s Westminster Research Associates has inked an agreement with integrated commission management solutions provider Commcise to a fully integrated, technology-based end-to-end solution that delivers compliance with upcoming MiFID II regulations relating to payment for research.  

Due to come into effect on 3 January 2018, the MiFID II regulations will require investment managers to be far more rigorous in the way they manage their research spend, the companies noted in a joint statement. At that point, asset managers with dealings in Europe must demonstrate, at a minimum, that trade commissions are unbundled or subject to a commission sharing arrangement that is being swept into a Research Payment Accounts (RPAs), research budgets are clearly defined and not linked to trading volume, research is appropriately valued and tracked against the research budget, and an audit trail exists for the research process. 

It is a daunting challenge for buy-side firms both technically and operationally, leading to the need for a single integrated solution that can handle all key aspects of commission sharing agreements and RPAs. This includes trade reconciliation, invoice management, research budgeting, research evaluation, consumption tracking, payment processing, cash management, MiFID reporting and due diligence support. 

The Westminster- Commcise joint solution approach will allow buy-side and sell-side firms alike to benefit from a turn-key MiFID II-compliant system.

“We are pleased to be working with Westminster Research Associates, which has a long pedigree of pioneering research aggregation services and a strong research network that will complement Commcise's offering,” said Amrish Ganatra, managing director at Commcise. “By integrating our technology, technical and business expertise and experience, we will be able to offer clients a wider range of options.”

“Commcise is an award-winning provider in this field, and we are delighted that Westminster can now offer clients extensive functionality for managing research payments,” added Chris Tiscornia, CEO of Westminster Research Associates. “We expect this will open up many new opportunities for us, particularly in Europe, as we continue to prepare for the implementation of MiFID II."

London-based Commcise offers independent, fully-integrated commission management solutions to the buy-side, sell-side and research providers. The company’s Commcise Buy solution 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. On the sell side, Commcise Sell allows executing brokers to transparently manage research commissions, CSAs, and RPAs funded by transactions or by the accounting model. The firm has more than 200 buy-side and sell-side clients globally.

A unit of New York-based Convergex, Westminster Research Associates is a single purpose broker-dealer, founded in 1993, that provides an agnostic, anonymous trading framework which allows money managers to aggregate CSA credit balances and simplify the process of obtaining investment research on a trading basis. Through Westminster, Convergex offers its customers access to a comprehensive suite of trading strategies – including global algorithms, crossing networks, DMA platforms, full-service and agency trading desks – in more than 100 markets worldwide.

In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

7 Things You Didn’t Know About Direct Lending Funds

May 30 2017 | 9:07pm ET

Direct Lending has become one of the hottest areas of alternative finance as investors...


From the current issue of