Instinet Canada has introduced its BrokerShare commission sharing arrangement (CSA) program for its Canadian institutional clients.
The CSA offering enables clients to accrue trading commission credits in a BrokerShare account by using Instinet’s trade execution services and then later direct Instinet Canada to pay their research brokers. The BrokerShare online commission management platform handles all payments, administration and record keeping.
“This program allows money managers to improve their trading relationships by focusing on brokers that provide best execution and still meet their research needs,” says Maureen Shankar, director of commission management services at Instinet. “It allows them to also better analyze overall execution costs.”
She adds, “Earlier this year the Canadian regulators came out with proposed guidance around the commission sharing concept and the regulatory environment is now conducive to these types of programs.”
Instinet launched BrokerShare in the U.S. in 2003 and now has more than 300 participants. “We’ve seen how successful the program is for us in the U.S. with consistent growth every year and the amount of payments we’re sending to research providers growing, so this was a logical extension,” says Shankar.