Screen INFOmatch Adds New Soft Dollar Arrangements Functionality to assist Investment Firms & Brokers Using Soft Commission Relationships.
AMSTERDAM, August 22, 2016 – Global market & reference data inventory platform vendor Screen INFOmatch has added soft commissions monitoring functionality to its platform, to assist investment firms who pay their brokers for information services using soft commission relationships. The move will enable clients to monitor data provided using soft dollar arrangements with brokers. Commissions paid by clients will be linked to their brokers with their inventory and the invoices they receive, as well as automatically calculating remaining credit.
Commissioning soft dollars has existed in the market for a long time, says Screen INFOmatch chief executive Peter Fruitema, “If an asset manager wants to do a trade, he will go and find a broker and rather than getting a discount on the deal, the broker will say ‘I will pay for your information services which you use to support your business’,” Fruitema says. “So it’s a situation where they do many deals and build up a credit, and then [the asset manager] can say ‘Here’s my Bloomberg invoice; can you please pay it?’” The relationship is known as “softing” because the cost of the Bloomberg terminal doesn’t appear on the P&L of the asset manager, but is paid indirectly, he adds.
Screen INFOmatch developed the Soft Commission module in co-operation with a sovereign wealth fund in Asia. While Screen INFOmatch previously had “softing” functionality in its market data management solution, the new client actively pushed for increased functionality. The Soft Commission module allows users to track more detailed broker information, payment instructions, commission sharing agreements, and also delivers an overview of broker commission credits versus paid invoices and pending invoice amounts, as well as alerting users to exceeding their remaining credit balance.
“With the Soft Commission module, you can list all the brokers you’re dealing with, you can track all the commission you can pay to each broker, and you can track all the invoices you have paid through that broker. So you can calculate your own balance at the end of the month, what you have outstanding, what has been paid for you, and what credit you have left for future invoices,” Fruitema says, adding that Screen has numerous other asset managers clients that leverage soft commissions and would be interested in the functionality. “We knew that this wasn’t just a development for one single client, and is something we can re-use for other clients and prospects in the market.”
Read more (article as published in Inside Market Data on August 22, 2016)
The Screen Group offers a range of specialised services and solutions for the professional financial information services industry since 1990. The labels that represent this unique suite of complementary services are Screen INFOmatch, Screen Consultants and Screen Markets.
Screen INFOmatch offers INFOmatch, a suite of market data management solutions that is used by market data business professionals around the globe. It assists our clients manage their market data costs, processes and workflows more efficiently.
Screen Consultants is the leading boutique consulting firm with a special focus on market & reference data and investment management solutions. Screen Consultants is an independent specialist with a track record of assisting financial institutions globally with managing business processes, market & reference data management challenges, selection & implementation of specialised information systems, technology and risk & regulatory compliance issues.
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