About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Buy-Side Waking Up To MiFID II Impact On Research Fees, Says Fidessa Executive

Subscribe to our newsletter

In recent weeks, the understanding of how to implement the rules for commission payments set in Europe’s MiFID II regulation has changed, according to David Pearson, head of post-trade strategy at trading platform provider Fidessa.

“The understanding now is that a broker must be paid for services they provide to clients, whatever those services are,” Pearson said. “That also includes research. The buy-side is obligated to make sure it has a process and understands what research it needs — and the value of that research.

“[The regulation] completely changes the landscape of how existing brokers offer their research at a bundled rate, and [buy-side firms] get everything the firm actually issues,” he added. “The process of how research is procured is going to fundamentally change as a result of understanding the inducement which goes hand in hand with this particular space.”

Fidessa has partnered with commission management software provider Commcise to offer the capability to manage payment of fees for research in the manner required under MiFID II once it takes effect in January 2018.

Together, Fidessa and Commcise have taken an algorithmic approach to handling research fee payments, as Amrish Ganatra, managing director and co-founder of Commcise, explained.

“On a trade-by-trade basis, the allocations or accounts that feature part of the trade help determine exactly how much research commission to add on a given trade,” he said. “We make that decision based on looking at the budget for every given allocation within that trade. … We give the buy side the tools to determine what this extra research charge is on a trade-by-trade basis.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Navigating the Build vs Buy Dilemma: Cloud Strategies for Accelerating Quantitative Research

Date: 20 May 2026 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes For many quantitative trading firms and asset managers, building a self-provisioned historical market data environment remains one of the most time-consuming and resource-intensive steps in establishing a new research capability. Sourcing data, normalising symbologies, handling corporate actions and maintaining...

BLOG

Exegy Acquires NovaSparks to Accelerate Convergence at the FPGA Layer

Exegy, the low-latency market data, trading, and execution technology provider, has agreed to acquire NovaSparks Inc., the specialist in Field Programmable Gate Array (FPGA) enabled market data and trading products. Exegy’s move to bring NovaSparks into the group signals a clear intent to exert deeper control over the FPGA-driven market data pipeline, from normalisation and...

EVENT

TradingTech Summit New York

Our TradingTech Summit in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Data Lineage Handbook

Data lineage has become a critical concern for data managers in capital markets as it is key to both regulatory compliance and business opportunity. The regulatory requirement for data lineage kicked in with BCBS 239 in 2016 and has since been extended to many other regulations that oblige firms to provide transparency and a data...