EQUITIES
COMMISSION RECAPTURE
FAQ
What is commission recapture?
Commissions have been deemed an asset of the Institutional Investor by the Department of Labor. The objective of a commission recapture program is to reduce transaction expenses and increase the investors overall performance.*
What is the history of commission recapture?
In 1986 the Department of Labor disseminated ERISA Technical Release 86-1 addressing a plan sponsor's program to engage in commission recapture.
How does Knight's commission recapture program work?
The investor instructs its investment managers to execute a portion of their trading activity to Knight or our broker network subject to best execution. Our program offers choice to the investment manager. Typically our brokers are the same execution providers the managers already utilize. Each month, all trading activity is reported and payment made to the investor for reinvestment or to offset expenses.
How is a recapture program implemented?
To establish a commission recapture program, please contact Rosemarie Burns at 201.557.6919 or email commissionrecapture@knight.com.
FAQ
What is commission recapture?
Commissions have been deemed an asset of the Institutional Investor by the Department of Labor. The objective of a commission recapture program is to reduce transaction expenses and increase the investors overall performance.*
| * | Pension plan sponsors should consult legal counsel regarding any specific commission recapture programs to ensure compliance with all applicable state and federal laws. |
What is the history of commission recapture?
In 1986 the Department of Labor disseminated ERISA Technical Release 86-1 addressing a plan sponsor's program to engage in commission recapture.
How does Knight's commission recapture program work?
The investor instructs its investment managers to execute a portion of their trading activity to Knight or our broker network subject to best execution. Our program offers choice to the investment manager. Typically our brokers are the same execution providers the managers already utilize. Each month, all trading activity is reported and payment made to the investor for reinvestment or to offset expenses.
How is a recapture program implemented?
To establish a commission recapture program, please contact Rosemarie Burns at 201.557.6919 or email commissionrecapture@knight.com.
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