The announcement said the LJR, a provider of commission
recapture services to institutional clients, is an Instinet
Group subsidiary. BoNY said the price is up to $159 million
in cash, of which $5 million will be contingent upon
achievement of a second quarter revenue target.
The news release said LJR services 1,400 plan sponsor
funds, with more than $2.2 trillion in assets from LJR’s
headquarters in New York and offices in Chicago, Dallas,
San Francisco, London, Tokyo and Sydney.
BoNY said it will operate LJR as a subsidiary of BNY Brokerage Inc., its agency brokerage and a member of BNY Securities Group. BNY Brokerage, currently a provider of commission recapture services, will consolidate its commission recapture business under the LJR brand name, the announcement said.
“The acquisition of LJR bolsters our position as the leading provider of agency brokerage and commission management services,” stated Carey Pack, president of BNY Brokerage Inc.
Commission recapture is a commission management service that enables plan sponsors or mutual funds to gain control over commission costs generated as a result of trades executed on their investment portfolios.