New York – Interesting news from BNY ConvergEx. In a press release dated August 3, 2010, BNY ConvergEx Group announced that they had secured a patent from the U.S. Patent and Trademark Office covering their commission management system. The patent relates to technology of Congent Consulting which was acquired by BNY ConvergEx in October 2009.
Cogent has two products that are involved in the technology patent, including CSA Trak and CSA Trak BD. The patent relates to specialized concepts involved in web-based payment mechanisms, as well as CSA Trak BD’s multi-client and multi-broker portals, including “Cloud” and CSA “Hub” for brokers.
BNY ConvergEx believes that the resulting flexible commission management service will cover off a number of buy-side issues, including: fiduciary responsibilities, reputational risk, reduced reporting errors and fraud.
In terms of strategy, Covergex Research Solutions, LLC could to be attempting to establish an inter-broker-dealer commission management solution. Alternatively, and perhaps more realistically, they could be looking at generating licensing fees associated with other firms adopting their technology.