PriceMetrix Inc.

PriceMetrix Inc.

April 22, 2010 09:00 ET

PriceMetrix Introduces Market-Based Equity Commission Schedule on 35th Anniversary of the Elimination of Fixed Equity Commissions

Schedule Intended as Reference for Financial Advisors

TORONTO, ONTARIO--(Marketwire - April 22, 2010) - PriceMetrix, the market leader in delivering systematic and scalable practice management solutions to the retail wealth management industry, today introduced the first ever market-based Commission Schedule. The Commission Schedule gives broker-dealers and their financial advisors a reliable reference upon which they can determine commissions on equity trades. The introduction comes on the eve of the 35th anniversary of the historic elimination of fixed equity trade commission rates in the U.S. securities industry.

"PriceMetrix created the Commission Schedule and is making it available to all firms and advisors at no cost because financial advisors need a market-based reference point when making pricing decisions," said Doug Trott, President and CEO of PriceMetrix. "With the new, simplified Schedule, advisors will have a better sense for what investors have actually paid and they can determine whether to offer clients a premium or a discount commission according to their own business models."

PriceMetrix has helped financial advisors improve their business performance for over a decade. The Commission Schedule was developed using the company's comprehensive database of equity transactions. The Schedule is derived from the PriceMetrix proprietary database of equity commissions paid by over 400,000 U.S. investors for 3.2 million full service retail trades from 2008 and 2009. The Schedule suggests commission amounts based on actual negotiated rates according to the size of the transaction. For example, the commission for a $20,000 trade is 1.5 percent of the principal, or $300.

"We've deliberately kept the Schedule as simple as possible," said Mr. Trott. "We show the suggested commission rate on eight different principal ranges so the entire Commission Schedule can fit on a business card."

Most of today's full service brokerage commission schedules have a structure based on the NYSE schedule in place in 1975, which is complicated and yields widely varying commissions for trades with exactly the same amount of principal. As a consequence, financial advisors often choose instead to confer with fellow advisors or even reference commissions charged by discount brokers. PriceMetrix's Commission Schedule can now be used by financial advisors as an alternative to often unwieldy commission schedules and hearsay.

"Almost 35 percent of equity trades performed by full service advisors are charged commissions lower than discount brokerage rates. This implies that advisors are frequently giving away their advice," said Mr. Trott. "Our Commission Schedule is designed to put a modern, simplified and market-based tool into the hands of advisors so they can make more informed decisions."

PriceMetrix believes the Commission Schedule will lead to improved conversations between advisors and their clients about price and the value advisors are delivering to them. It is transparent, fair and can be easily communicated and understood by advisor and investor.

The Commission Schedule can be viewed at

About PriceMetrix:

PriceMetrix is dedicated to delivering solutions that enhance the overall business results of retail wealth management firms by helping financial advisors, mid-level managers, and senior management become better 'CEOs' of their business. With 10 years of experience, we are the leader in delivering systematic and scalable practice management to retail wealth management firms and their financial advisors.

Our comprehensive understanding and experience inspired the development of award-winning, patented technology in The ValueOne™ Program and our patent pending CommissionCheck™ Service. The U.S. Market-Based Equity Commission Schedule is the newest practice management innovation from PriceMetrix. It is designed to help retail wealth management firms and their financial advisors make more informed market-based pricing decisions.

Founded in 2000, PriceMetrix has its principal place of business in Toronto, Ontario, and services a notable range of clients within Canada and the United States.

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