Instinet Incorporated, a global leader in electronic trading and agency-only brokerage services, today announced that its European brokerage subsidiary, Instinet Europe Limited, has been named the exclusive execution broker for Euler Securities, the independent specialist research firm.
Euler Securities produces high quality, customized research on large-cap, global companies across a variety of sectors and asset classes. Under the arrangement, buy-side clients consuming Euler Securities' research will use Instinet Europe as their exclusive execution broker. Clients can use Instinet's global, broker-neutral commission management platform, Plazma®, to direct payment to Euler. Plazma allows for the administration of various CSA programm es by providing sophisticated supporting analytics and enabling clients to manage their credits and balances, authorize payments and receive detailed statements and customized reports.
As a global agency-only broker, Instinet offers a full suite of electronic trading tools - including smart-routing to nearly all major dark and lit trading venues globally, algorithms, DMA, dark pools, TCA and several EMS platforms - as well as global sales and portfolio trading, to which Euler clients will have access.
Commenting on the announcement, Richard Balarkas, CEO of Instinet Europe, said, "We are delighted to be named the exclusive execution broker for the research clients of Euler Securities, and for Euler Securities itself. We are great believers in the value of independent research providers to the market, which is why Instinet's clients in Europe can use Plazma® to access more than 100 independent research firms, con fident in the knowledge that they understand what they are purchasing and how much they are paying for it."
"For too long, fund managers have been sold mediocre, generic research and, worse still, have not known what they have paid for it," added Tim Young, Managing Partner of Euler Securities. "For example, a fund manager using bundled trading commissions to pay for research is clearly paying more in a year of high volume trading than in a year of low volume trading. Our model is designed to provide bespoke research, written by experts and funded by clients in a way which helps them truly understand what they are paying for. In an age of greater scrutiny and transparency, we are confident this is a model which will appeal to the fund managers and their end clients."