Boston, June 19, 2018 – Sell-side commissions are under pressure, as rates have dropped precipitously over the past 20 years and overall volumes have not recovered to their 2008 highs while the fees brokers pay to the buy-side’s vendors have not adjusted commensurately. Even though brokers have claimed that they are helpless against the power of the buy-side order management system vendors’ fees without the buy-side’s intervention, the fees that brokers pay to vendors have historically been opaque, even to the buy-side. Is the buy-side starting to acknowledge that the market might be out of equilibrium, and could these firms start to ask their OMS vendors and brokers more detailed questions?
This Impact Report sheds light on the complicated cost relationships among the broker, the buy-side client, and the buy-side OMS vendor. Based on telephone interviews with 24 U.S. market participants conducted during the first and second quarters of 2018, it also analyzes the connectivity market and the challenges each participant is facing.
This 38-page Impact Report contains 11 figures and three tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.
This report mentions ACA NorthPoint, BlackRock, Black Mountain Systems, Bloomberg, Broadridge, BT Radianza, Century Link (formerly Savvis), Charles River, Enfusion, Eze, Fidessa, FIS (formerly SunGard), FlexTrade, IHS Markit, INDATA, Instinet, IPC, ITG, Itiviti (formerly NYFIX and Ullink), SimCorp, SS&C, Transaction Network Services (TNS), and TradingScreen.