Overview
Charles River Brokerage offers the institutional investment community a unique opportunity: trade directly with your normal coverage at numerous brokerage firms/ECN’s, or through Charles River Brokerage’s electronic Algorithmic trading strategies or Block Crossing Network, and feel confident that you are compliant within the parameters of Section 28(e) of the Securities Exchange Act of 1934. Formerly known as "soft dollars", Section 28(e) now governs the provisions for Executing Commissions, Research Commissions and Independent Research Commissions.
Experienced with the Section 28(e) process, Charles River Brokerage takes a consultative approach, guiding each firm to ensure understanding of, and adherence to, the subtleties of 28(e). Unlike other broker dealers servicing institutional clients, Charles River enters into a consultative, long-term partnership with each investment manager.
We offer:
• State-of-the-art technology which results in efficient and timely processing
• Secure online Account Portal for convenient auditing, viewing and approval of vendor invoices as well as timely access to comprehensive monthly reports
• Knowledgeable, experienced, proactive personnel
• The freedom to make service arrangements with your preferred third party vendors
• Aggressive and simplified pricing and payment (without ratios)
• The opportunity to consolidate and streamline all research and brokerage service payments
• Access to leading US and International execution and clearing firms
• True best execution; with Charles River Brokerage you have the freedom to select executing brokers based on best price, independent of peripheral services
• Personal attention through a consultative, service-oriented approach
Services we provide:
• Pre-negotiated execution arrangements and fees with leading clearing and execution venues
• Professional assessment of whether specific research and brokerage services fall under Section 28(e)
• Allocation recommendations; i.e., percent of usage you can safely allocate to a particular research or brokerage service under Section 28(e)
• Streamlined reconciliation and administration of Section 28(e) payments and services on your behalf
• State-of-the-art, online reporting including a consolidated monthly statement
Pricing
The Traditional Method of Payment
The traditional method of payment for items qualifying under Section 28(e) is to apply a set conversion ratio, which converts commission dollars into Section 28(e) purchasing power.
A New Method of Payment
Charles River has developed a unique commission conversion strategy that is straightforward and simplifies the process as compared to the traditional ratio method. Charles River's method not only helps you to achieve best execution but also simultaneously maximizes the amount of commission dollars available as Section 28(e) "currency".
The Charles River Investment Management System
Charles River Development clients may be able to utilize Section 28(e) credits toward payment of the Charles River Investment Management System (Charles River IMS). Charles River IMS falls under the "Mixed Use" provision of Section 28(e). Charles River Brokerage provides consulting and analysis (in conjunction with your legal team), based on your specific use of the product, to help you determine which individual components of the Charles River IMS licensing fee might qualify under Section 28(e).