Investment Technology Group (NYSE: ITG), a leading provider of technology-based trading services and transaction research, today announced that it launched its Commission Sharing Arrangement (CSA) program in Asia Pacific.
Global interest in these programs has increased significantly in the wake of broker consolidation as clients look for ways to efficiently manage their trading relationships.
The use of CSAs in Asia Pacific is expected to increase as firms move towards unbundling research from execution, as they have in North America and Europe. The incentive is best execution, which has become a global concept in the last few years as market structures evolve and buy side firms take more control of trading processes. In addition to Asia Pacific, ITG offers its CSA program in the US, Europe and Canada.
"As best execution becomes a global issue, asset managers are looking to unbundle purchasing decisions for research and execution, allowing them to select the best providers in each category," said Bob Gasser, ITG's Chief Executive Officer and President. "In the US, we've seen our CSA client base grow 41 percent this year as the neutral agency model is increasingly embraced in today's market environment."
"The Australian and Asian buy side is now starting to understand that trading costs can have a significant impact on fund performance," added Michael Corcoran, Director of Sales and Trading for ITG in Australia. "Therefore decisions of how and with whom to trade should be based on trading merit, and trading merit alone. By using CSAs to streamline trading through best execution providers, while still accessing the research they want, Asia Pacific asset managers can now take advantage of the cost savings that new trading tools and technology are bringing to the region."
ITG's comprehensive approach includes trading, commission management, consulting and administrative services, allowing personalized service for clients. In addition, ITG's multi-currency functionality allows global clients to use the currency of their choice. For clients that prefer to manage their own process, ITG's Broker Pay service provides an online portal for clients to view and manage all trade details, vendors, invoices, statements and trade history, as well as request the payment of research directly through the portal.