Commentary

Ivy Schmerken
Traders Magazine Online News

MiFID II Reaches Across the Pond: Is This the Calm Before the Storm?

Despite the view that MiFID II is a European regulation, US investment managers are experiencing disruption as they align their research payment and execution practices with the influential standard.

Traders Poll

As the SEC Tick Pilot is soon to expire, in your opinion, was it a solid fact finding mission or folly?



Free Site Registration

August 31, 2002

A New Research Model at Instinet

By Gregory Bresiger

Institutional investors will pay an explicit fee - an annual subscription - for research services, which will be based on order flow. That will depend on how many third-party research providers they use and the level of access to analysts.

This is the idea behind a new research model at Instinet. The giant ECN and brokerage is offering co-branded research in a number of sectors, Instinet officials said. They said that one of the principles of this new approach is to work with independent research firms instead of directly competing with them.

Instinet wants to offer a complimentary product to sellside research. However, Instinet's cooperate rather than compete approach is not exactly new.

Another firm, a Web-based seller of independent investment analysis called Jaywalk owned by the Bank of New York, is working with unaffiliated research firms. Jaywalk wants to work with independents whose distribution and marketing powers are sometimes weak.

Still, Instinet's new approach is significant because of its status as a giant in the ECN world.