Equities Management & Services
The Commission Management Solutions (CMS) Program allows J.P. Morgan to execute trades on behalf of clients at an agreed upon commission rate. J.P. Morgan retains a portion of the commission for its clearing and execution services and disburses the remaining dollar amounts to pay for research or brokerage services that fall under the protection of SEC Section 28 (e). We recognize that clients may use different methods to capture trades for the program and can accommodate those needs.
The program offers several benefits to money managers. Consolidating trading with fewer counter-parties streamlines the trading process, allows for more efficient payment of research, reduces the costs of opening and maintaining brokerage accounts and eliminates the need to trade with other brokers to pay for research, thereby vastly improving overall execution quality.
The CMS Program can be structured in two different ways:
- Client Commission Arrangements / Commission Sharing Agreements
- Traditional Soft Dollar Arrangements
The CMS Program is an extension of J.P. Morgan's Cash Equities business. It is an integral part of our overall institutional suite of products and solutions. We accumulate commissions according to our clients' commission management programs and pay various brokers based on the money manager's instructions. We track commissions, reconciliations, product payments and gather proper approvals. Clients can use various trading strategies to fund the CMS accounts:
- High touch coverage
- Low touch coverage (DMA, Algos, Neovest)
- Program Trading
J.P. Morgan’s Commission Management Group administers the Commission Management Solutions Program. We provide money managers with monthly statements which display month-end / year-to-date commissions, vendors paid and trade details. For additional information, please contact: