Instinet Europe receives FCA registration as a payment institution

Instinet Europe, the equity execution services arm of the Nomura Group, has received regulatory authorisation from the FCA.

Instinet Europe receives FCA registration as a payment institution

This approval will allow Instinet to offer a new segregated cash management and payment service solution to clients who have chosen to operate a hard dollar ‘research payment account.’

The service is a highly complementary addition to Instinet’s existing Commission Management business.

Instinet said its first clients are expected to go live in August 2015, through its integrated cash management and broker review platform, Plazma.

Instinet Europe CEO Adam Toms said: “As an authorised Payment Institution, we can offer our clients the flexibility to choose a solution that works best for them. Optionality is the key, as we still firmly believe that Commission Sharing Agreements (CSA) can offer the necessary tools for Asset Managers to effectively manage their research payments.

“We have seen strong growth in the CSA platform at Instinet, notably in our CSA Aggregation services. Our hope is that the regulators and politicians find the common ground necessary to allow our Clients to choose the model that works best for them, whilst keeping investor’s best interests at the heart of their business.”

The company applied for the registration in March 2015.