ITG (NYSE:ITG), a leading independent broker and financial technology provider, today announced the rollout of an enhanced Research Payment Account (RPA) solution to enable asset managers to adapt to the unbundling of research and execution required under the coming MiFID II rules in Europe.
The new ITG RPA solution offers a number of key features:
· Funding Flexibility and Security – The RPA can be funded with a research charge alongside the execution in a manner that can be operationally similar to a traditional Commission Sharing Agreement (CSA), but it can also be funded with a direct research charge to investors or from a firm’s own P&L (i.e. hard dollars). RPA accounts managed by ITG are held in an escrow account at a major global bank in Europe, segregated from brokers’ funds and controlled by the asset manager.
· Streamlined Administration – The ITG RPA solution includes administrative tools that will enable asset managers to set research valuations, create and track budgets for their end clients, segregate RPA balances by portfolio, strategy, client, region or investment team, and track executions and research at the broker, portfolio, strategy, and trader level. These tools can save valuable time and resources.
· Expert Global Guidance - ITG has dedicated commission management, finance and operations support teams in Europe, North America and the Asia Pacific region staffed by veteran team members, many with decades of experience in trade reconciliation, vendor vetting and payment administration.
Commenting on the new enhanced RPA solution, ITG’s Head of Global Commission Management, Jack Pollina, said “the coming MiFID II unbundling requirements are likely to impact asset managers around the world, not just in Europe. More than ever, European and global asset managers need an experienced global commission management partner to help them navigate and implement complex operational processes. ITG’s dedicated global team and enhanced RPA solution will enable clients to meet the challenges of MiFID II compliance and reporting, easing regulatory and administrative burdens and providing payment flexibility.”
ITG is a leading provider of commission management services and offers both traditional CSA and aggregation services worldwide as well as RPA administration services for asset managers with registered operations in Europe. ITG provides access to a network of more than 5,000 research providers, brokers and vendors worldwide. ITG was ranked #1 for CSA service and execution quality among mutual funds and hedge funds in the 2016 Greenwich Associates U.S. survey.