State Street Global Markets, the investment research and trading arm of State Street Corporation, has acquired FinancialSockets, a firm that offers asset management firms a technology solution for managing and reporting on their usage of research and execution commissions. State Street says that the resulting product is “a complete, end-to-end solution that enables customers to better manage commission flows, address regulatory reporting requirements and administer commission sharing arrangements.”
The State Street Global Markets and FinancialSockets combination offers:
- Broker evaluation software that enables investment managers to conduct a cost/benefit analysis and tie compensation to the quality and depth of broker services provided.
- A commission management platform that consolidates tracking, analysis and reporting of costs and payments to address regulatory and business management reporting requirements.
- Administration of commission sharing arrangements among asset managers, brokers and research providers, simplifying the process for all participants.
According to a press release, the current industry practice for commission sharing can be complex and inefficient, since investment managers, brokers and research providers all operate independently. “Commission management is becoming an important service for asset managers who need to meet compliance demands of best execution while simultaneously preserving their ability to acquire research from multiple providers,” said Stan Shelton, executive vice president and head of State Street Global Markets. “Our combined service offering will provide institutional investors with a comprehensive solution across the entire commission management process.”
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