City Fios

Fios Commission Sharing Agreements

Over the past few years regulatory attention and evolving market practice have made use of Commission Sharing Agreements (CSA) in equity markets more common. Increasing numbers of CSA clients, increased complexity in the arrangements themselves, and closer scrutiny of revenue attribution has made all-too-common manual and spreadsheet-based CSA tracking processes both time consuming and operationally risky.

Fios contains comprehensive support for CSA management. Key features are as follows:

  • Ability to store details of commission sharing arrangements between execution brokers and buy-side clients.
  • Proven and flexible trade processing, using the same rigorous workflow and data validation processes as our core product.
  • Calculation of CSA deductions for each trade, based on the arrangement reference data, as part of this process.
  • Automatic attribution of commission revenue between a CSA pot and other value channels in line with in-house methodologies.
  • An efficient process for periodic CSA ‘account closing’, transferring accrued CSA deductions to a client statement.
  • A simple mechanism for recording payments made to third parties in line with client instructions, and again feeding into the client statement.
  • Ability to capture in-bound CSA payments, including attribution of these revenues to product and client channels for management reporting purposes.
  • Rich reporting functionality, including:
    • Daily/weekly trade reconciliation reports, supporting statement balances.
    • Account statements.
    • Internal management information reports, including attribution of net revenue between sales, research and execution efforts.
    • A powerful on-line reporting tool, facilitating intuitive interactive enquiry into trade, statement and payment data.