Executive Summary

Greenwich Associates inaugural Comprehensive Commission Rate Study reveals that reported rates vary broadly among institutions trading in the same markets, not only in terms of bundled rates, but also in how the bundled rate is split into commission payments attributable to execution and tack-on rates for research.

The benchmark data covering 45 different markets shows the institutions pay an 8.5 bps premium in average bundled rates in emerging markets. One surprising finding: Commission rates paid by large institutions don’t differ meaningfully from overall averages. 



During November and December 2014, Greenwich Associates interviewed heads of equity trading at 99 North American and 31 European institutions regarding the typical commission rate paid across 45 different markets. Twenty-three are categorized by MSCI as developed markets and 22 as emerging markets. Desks were asked for their overall bundled commission rate, high-touch execution-only rate, electronic execution rate, tack-on rates for both high-touch trades and electronic trades, as well as their all-in blended rate.

The data reported in this document reflect solely the views reported to Greenwich Associates by the research participants. Interviewees may be asked about their use of and demand for financial products and services and about investment practices in relevant financial markets. Greenwich Associates compiles the data received, conducts statistical analysis and reviews for presentation purposes in order to produce the final results. Unless otherwise indicated, any opinions or market observations made are strictly our own.