INDEPENDENT RESEARCH & COMMISSION MANAGEMENT. GATEWAY TO INDEPENDENT RESEARCH Providing the buy-side...

INDEPENDENT RESEARCH & COMMISSION MANAGEMENT

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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• Independent, impartial advice• No economic relationships with IRPs• No traditional research department• Conflicted manager and aggregator of research commissions

November 2014 / Marex Spectron / Independent Research & Commission 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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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 order-routing / 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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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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CONTACT DETAILS


Nicholas [email protected] +44 (0)20 7650 4485M + 44 7785 948 461

Edward [email protected] +44 (0)20 7650 4486M + 44 7795 118 744

London: Head OfficeLevel Five 155 BishopsgateLondon EC2M 3TQ

marexspectron.com

9November 2014 / Marex Spectron / Independent Research & Commission Management

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