Commentary

Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

Traders Poll

Would you feel better if the Chicago Stock Exchange were purchased by U.S. firm or consortium rather than a foreign one?

Yes

73%

No

4%

Doesn't matter to me

23%

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.