Cogent Consulting Releases Broker Dealer Version of CSA Trak for Managing Commission Sharing Arrangements.SUMMIT, N.J. & LONDON -- Cogent COGENT - COmpiler and GENeralized Translator Consulting LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control today announced the release in the US, UK and other global markets of a new broker dealer version of its CSA (1) (Canadian Standards Association, Toronto, Ontario, www.csa.ca) A standards-defining organization founded in 1919. It is involved in many industries, including electronics, communications and information technology. Trak technology for managing all details of commission sharing arrangements between sell side firms and their buy side clients. CSA Trak BD[TM] is the latest module in a growing line of Cogent web delivered products to meet the commission management needs of sell side firms. Cogent is the leader in such technology for the buy side, operating more than 100 sites for clients that include many of the world's largest investment managers and hedge funds hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" . These firms use Cogent systems to manage their commissions, including spending channeled via CSAs and CCAs, and to conduct broker research valuations on 600 broker dealers and third party research providers, collectively, worldwide. Approved by regulators in the US, UK and France, CSA/CCAs provide buy side firms with a more transparent way to pay for "best research" while upholding their fiduciary fiduciary (fĭd  `shēĕ'rē), in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. responsibilities to get
the "best execution" possible. As a result, many broker
dealers are competing with each other on how best to offer CSA/CCAs to
their clients.
"Because CSA Trak BD is so easy to implement and effective to use, we believe it will help sell side firms to retain and/or attract clients during this challenging time in the financial industry," said Robin Hodgkins, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cogent. He pointed out that unlike other technologies, CSA Trak BD: * Can operate as a broker sponsored site or as a "virtual CSA aggregation" point for clients to manage CSA balances across brokers. * Is based on a proven system already used by large investment managers and hedge funds to manage CSAs at numerous brokerage firms. * Is paid for through a simple annual subscription model and delivered over the web. * Gives a brokerage firm's buy side clients a portal for uploading and approving invoices, viewing balances, and running reports and statements. Third party research providers and vendors have access to their own site as well. In addition, as an independent firm devoted to the buy and sell side, all data and information processed though Cogent is kept strictly confidential. CSA/CCAs permit the unbundling A regulatory requirement that enables a competing service provider to purchase parts of the incumbent local exchange carrier's network in order to provide service to its customers. See ILEC. of execution costs Execution costs The difference between the execution price of a security and the price that would have existed in the absence of a trade, which can be further divided into market impact costs and market timing costs. from research costs by allowing the buy side to separately pay brokers for best execution while also building a commission pool at those brokers that can be used to pay third parties for best research. CSA Trak BD tracks this data with far greater efficiency than home grown spreadsheets or databases that many sell side firms currently employ. Users can quickly analyze and report on all commissions received from clients, the research commissions available, which third party research firms should receive payments, and whether there are adequate funds in the pool to make the payment. The information can be managed on an individual client basis, and then combined so that only one check needs to be issued to any third party provider. About Cogent Cogent Consulting LLC is the world leader in systems that enable investment advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and and hedge funds to gain total control and complete transparency over their trading and research commissions. Money management and brokerage firms around the world use Cogent systems to automate To turn a set of manual steps into an operation that goes by itself. See automation. broker review, voting and relationship management; commission reporting and reconciliation; commission sharing arrangements (CSAs) and client commission arrangements (CCAs); and unbundling of trading and research commissions. Cogent systems are web-based, and easy to use, implement and customize. |
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