OREANDA-NEWS.  Driven by customer demand, Instinet Europe Limited (Instinet) today announced its application as a Payment Institution with the Financial Conduct Authority (FCA).

Instinet’s designation as a Payment Institution will enable it to offer a new segregated cash management and payment service solution to clients who have chosen to operate a h ard dollar ‘research payment account.’

The service is a highly complementary addition to Instinet’s existing Commission Management business, having seen C ommission S haring A rrangement (CSA) balances double year on year, and hit a new record high in February 2015. The payment service solution will give clients long term optionality, continuity and stability as they navigate the evolving regulatory landscape.

“Instinet’s CSA platform remains a core part of our business in Europe, and we have experienced sign ificant growth in this area in recent years. We lead by the quality of our Commission Management services, as well as our ability to provide clients with long - term, cost - effective solutions. Applying to become an authorized Payment Institution, enables Ins tinet to offer our c lients the flexibility to choose a solution that works best for them,” said Adam Toms, CEO of Instinet Europe Limited.

Instinet is at the forefront of innovation, providing clients with Commission Management solutions, to effectively ma nage their investment research payments through CSAs . With heightened regulatory focus on the consumption and payment of those services, some asset managers are seeking alternative mechanisms to pay for the investment research they consume. As a Payment In stitution, Instinet will appeal to firms who may choose to use their own resources , or more commonly , the assets of the underlying investors through direct fund charges, to pay for investment research.

Subject to FCA approval, the new registration will sup port firms looking to outsource the cash management and payme nt administration of that model to an experienced provider.