ITG establishes buy-side RPA tool ahead of best execution and unbundling

ITG’s RPA tool combines administrative processes and a support team to help the buy-side navigate unbundling requirements.

ITG has launched a research payment account (RPA) tool to allow the buy-side to comply with unbundling and best execution requirements under MiFID II.

The RPA can be funded with a research charge with execution, similar to the commission sharing agreement method, but can also be funded with a research charge to investors or from a P&L.

It includes administrative tools to help set research valuations, create and track budgets for end clients and segregate the RPA balances by portfolio, client or region.

ITG said it has also established a dedicated support team for commission management, finance and operations in North America, Europe and Asia Pacific.

ITG’s head of global commission management, Jack Pollina, explained the impending unbundling rules under MiFID II are likely to impact the buy-side worldwide.

“More than ever, European and global asset managers need an experienced global commission management partner to help them navigate and implement complex operational processes,” he said.

With less than a year until the implementation of MiFID II’s research unbundling rules, a recent study suggested many buy-side firms are still not entirely sure of their obligations.

Electronic Research Interchange polled almost 100 buy-side, sell-side, analysts and wealth management professionals to identify the challenges ahead of MiFID II.

Over a third of buy-side respondents stated they are not confident of being ready for implementing the unbundling rules - due to come into effect on 3 January 2018.