Jones Trading, a US institutional agency brokerage, has announced the addition of global commission management to its suite of services, hiring John McGough to spearhead the expansion.
Jones Trading's new commission management service will offer clients an aggregated, broker-neutral platform, to manage commission-sharing agreements across multiple brokers. According to the firm, this will enable clients to reduce counterparty risk through diversification of sell-side relationships. It will also include a service that will allow clients to combine their best execution requirements with the ability to pay for research in a neutral fashion.
McGough joins Jones Trading's New York office from US broker dealer BTIG, where he was director of the firm's commission management services. He has also worked in a number of commission management roles for firms including Kellogg Partners, Island ECN, Prudential Equity Group and Standard and Poor's Securities.
“Jones Trading has built its franchise based on relationships and an understanding of client intent, strategy, and style,” said McGough. “Our new commission management platform will enhance performance and improve efficiency for our clients by expanding the allocation of their valuable commission dollars.”
“Combined with our previous initiatives, commission management brings institutions and hedge funds the already established benefits of our execution capability combined with access to qualified 28(e) research,” added Packy Jones, CEO and chairman of Jones Trading. “This latest expansion builds out our franchise in a new direction while retaining the model our clients rely on to source liquidity and secure quality execution.”