Instinet has added a broker vote application to its commission management system, allowing the buyside to track how much it pays research providers for their services.
The broker vote is the process when an institution permits traders, portfolio managers and others to votes on the quality of broker-provided research. Once votes are tallied, the institution can allocate money to pay the provider. Broker votes are often calculated once a year. Jonathan Kellner, president of the Americas at Instinet, said that when buyside users can evaluate the performance of their execution and research brokers, it helps keep costs down and maximize commission spend.
"Clients are challenged with the broker vote process, as it is very data-intensive," Kellner said. "By including a broker vote module with the commission suite, we’re providing a natural extension to help users dealing with how to allocate their commission wallet more simply."
Users can view their historical allocations, both by number of votes and total commission paid. Also, the buyside can input, track and rate relevant information about each broker throughout their review period to assist in the voting process-such as research quality, whether there was an analyst visit and access to corporate executives.
A research provider report card can be generated by the buyside users to qualitatively rate a provider’s service level and compare one provider to another.
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