Investment Technology Group Expands Commission Sharing Arrangement Program to Asia Pacific
NEW YORK--(BUSINESS WIRE)--Dec. 3, 2008--Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology-based trading services and transaction research, today announced that it launched its Commission Sharing Arrangement (CSA) program in Asia Pacific. Global interest in these programs has increased significantly in the wake of broker consolidation as clients look for ways to efficiently manage their trading relationships.
The use of CSAs in Asia Pacific is expected to increase as firms move towards unbundling research from execution, as they have in North America and Europe. The incentive is best execution, which has become a global concept in the last few years as market structures evolve and buy side firms take more control of trading processes. In addition to Asia Pacific, ITG offers its CSA program in the US, Europe and Canada.
"As best execution becomes a global issue, asset managers are looking to unbundle purchasing decisions for research and execution, allowing them to select the best providers in each category," said Bob Gasser, ITG's Chief Executive Officer and President. "In the US, we've seen our CSA client base grow 41 percent this year as the neutral agency model is increasingly embraced in today's market environment. "
"The Australian and Asian buy side is now starting to understand that trading costs can have a significant impact on fund performance," added Michael Corcoran, Director of Sales and Trading for ITG in Australia. "Therefore decisions of how and with whom to trade should be based on trading merit, and trading merit alone. By using CSAs to streamline trading through best execution providers, while still accessing the research they want, Asia Pacific asset managers can now take advantage of the cost savings that new trading tools and technology are bringing to the region."
ITG's comprehensive approach includes trading, commission management, consulting and administrative services, allowing personalized service for clients. In addition, ITG's multi-currency functionality allows global clients to use the currency of their choice. For clients that prefer to manage their own process, ITG's Broker Pay service provides an online portal for clients to view and manage all trade details, vendors, invoices, statements and trade history, as well as request the payment of research directly through the portal.
About Investment Technology Group
Investment Technology Group, Inc. (NYSE:ITG), is a specialized agency brokerage and technology firm that partners with clients globally to provide innovative solutions spanning the entire investment process. A pioneer in electronic trading, ITG has a unique approach that combines pre-trade analysis, order management, trade execution, and post-trade evaluation to provide clients with continuous improvements in trading and cost efficiency. The firm is headquartered in New York with offices in North America, Europe and the Asia Pacific regions. For more information on ITG, please visit www.itg.com.
In addition to historical information, this press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the company's ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; financial market volatility; general economic conditions in the United States and elsewhere; evolving industry regulation; cash flows into or redemption from equity funds; effects of inflation; customer trading patterns; and new products and services. These and other risks are described in greater detail in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and other documents filed with the Securities and Exchange Commission and available on the company's web site.
Investment Technology Group, Inc.
Investor and Media Relations (US):
Alicia Curran, 212-444-6130
Media Relations (Asia Pacific):
Clare Rowsell, +852 2846 3567
Source: Investment Technology Group, Inc.