Payment

Fixed or Variable Price

We negotiate flexible and cost-effective payment solutions, based on your needs and regulatory constraints.

Research payment can either be at a pre-agreed fixed price or, in most cases, vote-driven or trade-driven.

This can be for one or a selection of IRP's.

A flexible payment split between a selection of IRP's can also usually be agreed, to take into account different usage rates during different time periods.

Payment can either be via Enzard or direct to the IRP, whichever is most appropriate.

Payment Mechanics

There are two main payment mechanisms, commission share and "hard dollar".

Commission Share viz. Commission Sharing Arrangements (CSA's) in the UK or Client Commission Agreements (CCA's) in the USA.

We help you select an appropriate executing broker and work with you to negotiate the optimum split between the execution and research portions of the commission paid.

This method of payment can be used for both fixed price and variable price payment.

• Fixed Price - this is in practice very similar to traditional "Soft Dollar'' payment, where the research portion of the commission paid to the executing broker is totaled into a "pool", out of which pre-agreed and invoiced fees are paid.
• Variable Price - when the amount paid for the research is dependent on trade-flows. The amount payable may be derived from a percentage-based vote in a preceding period, or by a directed trade to reward a particular research service. An invoice from the IRP is usually but not always necessary. When it is, the invoice can prepared and submitted after the commission has been paid to the executing broker. 

"Hard Dollar" (from your own management fees)

Like commission share, this method of payment can also be used for both fixed price and variable price payment. However In practice most research paid for by hard dollar tends to be for a pre-agreed fixed price.

Enzard's Fees

We ourselves are paid primarily by percentage-based fees from the IRP's, but we do also undertake directly funded consultancy projects.

» "Soft Dollars" Regulation