Bonaire offers new way to manage execution fees
Bonaire Software Solutions, a provider of payment solutions for asset managers, now offers automated trade execution cost management for investment managers, including vendor invoicing and cost allocation tools.
Building on Bonaire’s existing fee calculation engine
Revport, the new functionality lets firms calculate fees without relying on
vendor invoices, which gives a better overall picture of trading costs at any
Using the Revport engine, the solution can calculate and
allocate trade execution expenses back to the appropriate cost centre, enabling
desks to have a precise picture of their true costs.
According to the software vendor, the increase in the buy-side's execution partners, due to fragmentation and
regulation on best execution, has meant trading firms now need to deal with costs
across a greater number of participants.
"We discovered that many firms were managing their trade execution expenses on Excel spreadsheets and were often incurring higher trading costs because of insufficient operational control and visibility," said Chris John, CEO, Bonaire. "With global regulators and legislators demanding greater transparency and reporting, financial institutions today cannot afford to risk mis-managing their trade execution costs."
Bonaire COO John Bosley added managing execution costs places an increasing
strain on trading firms, which this updated functionality will directly
“We were able to tap into the power of our existing fee
calculation engine and adapt it for trading firms’ unique needs.
“We believe that this solution will transform the trading
desk as firms will now have highly valuable intelligence on what they are
paying and to whom – a discovery that may save these firms thousands if not
millions of dollars a year,” Bosley said.
The automated technology will reduce fee leakage through automated expense validation and reconciliation of trading execution fees, while allowing for cross-vendor cost comparisons and and improvement in trading desk cost accuracy
through the use of actual trade data.