INDEPENDENT RESEARCH &
COMMISSION MANAGEMENT
INDEPENDENT RESEARCH & COMMISSION MANAGEMENT
GATEWAY TO INDEPENDENT RESEARCH
• Providing the buy-side with expert advice on the Independent Research landscape and access
to best-of-breed Independent Research Providers (IRPs) and specialist Data Providers
• Unparalleled expertise ~ 20 years’ combined experience
• Holistic solution encompassing all aspects of Independent Research procurement, management,
funding and reporting
COMMISSION MANAGEMENT SOLUTIONS
• Access to market-leading Commission Management and Aggregation platform and high-quality
execution services
• Deep understanding of the FCA’s policy on the use of dealing commission as well as the
overall regulatory environment
CONFLICT-FREE
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Independent, impartial advice
No economic relationships with IRPs
No traditional research department
Conflicted manager and aggregator of research commissions
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Management
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INDEPENDENT RESEARCH
THE BROKEN SELL-SIDE RESEARCH MODEL
• Conflicts of interest, no exclusivity, a lack of ‘out of the box’ contrarian
thinking, no customisation, and research perceived as ‘free’ through bundled services
ADDING VALUE – A UNIQUE SERVICE
• Introductory Broker
• One of the largest distributors of Independent Research in the UK
• Relationships with a large number of providers globally, covering all asset classes
and investment methodologies
• Due diligence carried out to assess quality of IRPs output
• Optimising ROI on Research Spending
• Anecdotal evidence suggests that the cost of Independent Research is substantially
lower than the implicit cost of research produced by the bulge-bracket; engaging
Marex Spectron to construct a research framework can add real savings to a research
budget
• Pricing & Budgeting
• Access to Marex Spectron IRP Pricing Data
• Curation Services & IRP Management
• Relationship management and associated reporting and administration
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INDEPENDENT RESEARCH
ADDING VALUE – CONSULTING SERVICES
• Deep Dives
• Customised IRP search and recommendations related to specific client queries
• Regular publications/reviews of leading IRPs
• Focusing on emerging investment themes, methodologies & geographies
• Primary Market Research
• Access to organisations that can perform proprietary channel checks, and / or
detailed global, multi-lingual surveys of buyers, customers or suppliers – designed
and co-ordinated in consultation with Marex Spectron
EVENTS
• Regularly host events promoting Independent Research, often in collaboration with IRPs
• Client lunches with prominent speakers
• Regulatory briefings
• Topical presentations and seminars, hosted in conjunction with prominent researchers
• Regular contributor in Financial media including Financial News, Eurohedge and as part of
Integrity Research in the USA
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Management
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COMMISSION MANAGEMENT
MANAGING COMMISSIONS – STATE OF THE ART TOOLS
• Commission Management
• Specialist in Commission Management
• Aggregator of CSA funds for multiple brokers and counterparties
• Segregation of client money
• Online Solution
• In association with a leading vendor, Marex Spectron now offers clients access to a
market-leading Commission Management platform
• Platform is a fully-integrated online portal with the following features:
o Trade Reconciliation - Automated trade-matching algorithm for all broker trade
files
o Invoice Management - Easy uploading of invoices and simple delegation to brokers
for payment
o Commission Management - Full view of each transaction and balances across all
brokers
o Reporting - Complete audit-trail of all transaction data
o Broker Vote - Customisable parameters to support a client’s broker voting process
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RELATED SERVICES
CASH EQUITIES
• Team of professional, highly experienced Sales-Traders working with customer execution
traders
• Considered and thoughtful approach to execution of client orders
• Conflict-free; pure agency-basis
• Broad touch execution with high-touch care orders combined with access to smart orderrouting / algorithmic tools and light and dark liquidity pools
• Trading technology underpinned by Fidessa OMS platform; supplemented by trading and analysis
tools developed in-house to enhance overall quality of execution
• Fully FIX-compatible to receive and update care orders
• Markets traded – UK and all major European markets; South Africa; Poland and Czech; North
America and selected APAC markets
• Settlement is either via self-clearing arrangement with Bank of New York Mellon or a Model B
arrangement provided by Pershing Securities Ltd
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Management
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REGULATORY ENVIRONMENT
PS14/07,
DP14/03, MIFID II AND BEYOND
• Latest summary of regulatory developments provided
• Ongoing observation, analysis and reporting
• Collaboration with regulators, industry experts, researchers and fund management houses
• Marex Spectron well positioned to assist in FCA-compliant processes:
• Independent
• Research impartiality
• Broker neutrality
• Conflict-free
• CSAs promote use of best-execution and transparent reporting of research pricing
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Management
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CONTACT DETAILS
Nicholas Dray
[email protected]
T +44 (0)20 7650 4485
M + 44 7785 948 461
Edward Blad
[email protected]
T +44 (0)20 7650 4486
M + 44 7795 118 744
London: Head Office
Level Five 155 Bishopsgate
London EC2M 3TQ
marexspectron.com
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November 2014 / Marex Spectron / Independent Research & Commission
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Commission Management Overview