Frequently Ask Questions
Why charge commission for fixed income products?
Conduit believe there is a need in the fixed income market for an agency-only business model, where the execution price and commission paid are transparent. Conduit does not act as a principal to any transaction and, therefore, agency fees are our only source of revenue.
Can I send an equity order directly to the market (DMA)?
Yes, however, to protect Conduit and it's clients, mutually agreed and adequate pre-trade risk controls, such as maximum order size, limit price deviation, short sale etc. will be applied. DMA can be via a Bloomberg terminal or other FIX enabled execution management systems.
Can Conduit, the execution broker or clearing agent of Conduit identify the underlying clients of an EAM?
No, orders are sent with an underlying account sub allocation, Conduit and it's agents only see the relevant account details required to facilitate settlement. As External Asset Managers are regulated entities and are required to KYC their end clients, Conduit is required only to KYC to the EAM level and not beyond.
Why would Private Banks agree to allow their clients to execute with Conduit?
A growing number of private banks recognise the needs of a market segment that requires levels of pricing and service that are beyond their resources to meet, Conduit offers these private banks an avenue to grow new AUM and provide additional services that are beyond the scope of Conduit such as structured products, funds and succession planning. We have found that private banks with an automated DVP settlement process are accommodative.