JonesTrading Institutional Services LLC, an agency broker known for block trading in U.S. and international securities, is expanding its services into global commission management.
The firm has hired industry veteran John McGough as management director to spearhead the expansion. Previously, McGough was director of commission management services for BTIG.
JonesTrading will soon offer a virtual aggregation /broker neutral platform to manage client commission agreements (CCA) and commission sharing agreements (CSAs) business across multiple brokers in an effort to reduce counterparty risk through diversification, according to today’s release.
“JonesTrading has built its franchise based on relationships and an understanding of client intent, strategy, and style,” stated McGough, in today’s release. “Our new commission management platform will enhance performance and improve efficiency for our clients by expanding the allocation of their valuable commission dollars.”
The firm also provides its clients with a commission management service that combines the ability to obtain best execution with the ability to pay for research in a conflict-free environment, states the company.
To develop the commission management business, McGough will be New York-based for Jones Trading, which is located in Los Angeles. Prior to JonesTrading, McGough was responsible for global expansion of BTIG’s commission management business. Before BTIG, he established commission management efforts for Kellogg Partners and The Island ECN. He was also head of soft dollar sales for the Prudential Equity Group. He began his career in institutional soft dollar sales with Standard & Poor’s Securities.
Commenting on the news, Packy Jones, chairman and CEO of JonesTrading, said. “Over the last several years JonesTrading has expanded our agency, relationship based business across asset classes as well as into Europe, Asia and Canada. This latest move into commission management expands the breadth and depth of our offerings, and responds to a critical client need. “ Jones added, “Combined with our previous initiatives, commission management brings institutions and hedge funds the already established benefits of our execution capability combined with access to qualified 28(e) research."
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio