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 given time.
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 address.
“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.