Furthermore, the research highlights a reduction in the number of equity research providers to an average of 13.6, from 15.3 over the past three years, suggesting a more focused and perhaps more strategic selection of research partnerships.
Commission Sharing Arrangements (CSAs) play a significant role in this ecosystem, with 61 percent of Canadian managers employing these arrangements to compensate brokers, third-party research providers, and other vendors, underscoring the importance of efficient commission use in the trading strategy.
Liquidity sourcing and commission allocation receive considerable attention, with a prominent emphasis (37 percent) placed on sourcing natural liquidity. This focus reflects the market’s shift toward transactions that are considered “natural” interactions between buy-side institutions.
Despite this, capital commitment, accounting for 14 percent of the overall…
