Instinet to offer cash management and payment services to research clients
Nomura’s equities execution unit, Instinet Europe, is to offer cash management and payment services to purchasers of its investment research products following authorisation from the UK’s Financial Conduct Authority to operate as a payment institution.
Instinet applied for the registration in March this year with the aim of complementing its commission management business and the first clients are expected to go live this month, through the integrated cash management and broker review platform, Plazma. The payment service solution, available to investment firms throughout the EU, will provide long term optionality, continuity and stability in how they manage the consumption and payment of investment research.
“As an authorised Payment Institution, we can offer our clients the flexibility to choose a solution that works best for them,” said Adam Toms, chief executive of Instinet Europe. “Optionality is the key, as we still firmly believe that commission sharing agreements can offer the necessary tools for asset managers to effectively manage their research payments. We have seen strong growth in the CSA platform at Instinet, notably in our CSA Aggregation services. Our hope is that the regulators and politicians find the common ground necessary to allow our clients to choose the model that works best for them, whilst keeping investor’s best interests at the heart of their business”.
Working with Instinet’s support team, clients can track research budgets, instruct research payments, generate management reporting, and use the broker voting functionality, all through the integrated Plazma platform. Instinet says that the use of CSA Aggregation has become more widespread, offering a holistic view of multiple CSA programs in one system, “simplifying the administrative control whilst enhancing the governance framework”.