CSAs: Possible Pitfalls
Traders Magazine, December 2006
Commission sharing arrangements typically involve three parties: a money manager, an executing broker and a research broker. The money manager in conjunction with his supplier of research, the research broker, will determine the value of the research. He then tells the execution broker, typically an agency, or bulge bracket firm, how much to pay the research broker. There may or may not be an invoice.
All TradersMagazine.com articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.