Virtu offers a range of services to support our clients who come to us for both electronic and voice trading. Clients can leverage our Global Commission Management services, including Client Commission Arrangements and Direct Expense Programs, to pay for third-party research and other brokerage services. We customize programs to meet client requirements, offer competitive rates and support the program with exceptional client service.
Client Commission Arrangements provide flexibility to investment managers, allowing them to focus on selecting their best execution partners while simultaneously being able to generate research credits to pay for Section 28(e)-eligible research and brokerage services. Client Commission Arrangements are also implemented via a cost-plus or execution-plus model, which helps promote greater transparency in respect to the execution and research components of a commission.
Virtu's Global Commission Management services allows clients to select trade execution partners based upon best execution principles. Research credits can be generated through multiple trading venues including Direct Market Access (DMA) platforms, dark pools, algorithms and institutional trading. Clients can manage and consolidate trading partners and research obligations, with online access and control as well as dedicated support from our client service team.
For hedge fund clients that do not rely on the safe harbor provided by Section 28(e), Virtu will make payments for products and services based upon commission credits generated, and client authorizations and disclosures.
We offer a practical consolidation service that eliminates the need for multiple Commission Sharing Agreement (CSA) platforms. Through a secure website, clients can generate commission reports, expedite trade reconciliations with multiple CSA brokers, reduce buy-side operational risk and administrative costs by outsourcing, process payment in a timely manner, and remove counter-party risk by pooling research commissions with Virtu. Our flexible platform accepts trades and CSA credits, or CSA credits only, based on the client’s preference.
Through our Commission Recapture program, we credit a portion of commissions for U.S. and international trades executed with Virtu and our broker network. These credits may be used by the investor to reduce expenses and increase overall performance.
Investment advisors should consult their legal counsel regarding any soft dollar business to insure compliance with all applicable state and federal laws. This summary does not constitute legal advice and should not be used as a substitute for advice of legal counsel qualified to give advice in the area of the law referred to in this summary.
Commission Management is a service offered by Virtu, member of FINRA and SIPC or, Virtu Europe Limited, a broker-dealer authorized and regulated by the Financial Conduct Authority. Both are wholly owned broker-dealer subsidiaries of Virtu Financial. For important disclosures related to products and services, please click here.