Opaque, Bundled OMS Connectivity Fees Are an Excessive Toll That Might Be Putting You at Regulatory Risk. Here’s What You Can Do About It
Hidden transaction charges from OMS providers are eating commissions, raising transaction costs and dragging down investment performance – all without disclosure to investors. Firms on both sides of the Street are paying millions of dollars to trading platform providers and network vendors that deliver little to nothing in return. These providers offer their technology at seemingly affordable prices, only to charge a fortune in connectivity fees down the line. As cost pressures continue to ratchet up and conflicts of interest remain in the regulatory crosshairs (as evidenced by frameworks like MiFID II and the recent furor around payment for order flow), this is an area where identifying a more transparent approach can make a big difference to your bottom line.