Competition within the market will spark a wave of innovative research products in which “premium” services, including personalization, interactivity and multi-channel distribution, will be critical for commercial success.
Denver, CO (PRWEB) February 06, 2014
In a new book called The Coming Revolution in Investment Research Distribution, author Neil Scarth describes the implications of emerging unbundled commissions environments in the United States and Europe. Now in a position to lose a significant share of research spending, how will investment banks adapt to fend off competition from other research publishers? By studying the impact of similar regulations, Scarth uncovers the risks and opportunities unbundled commissions pose for investment banks.
Scarth’s study suggests:
-- New regulations around commissions may lead to a “priced” market for investment bank research which will potentially transform the institutional equity research market to resemble other specialist publishing markets in which consumers only receive products they purchase.
-- Competition within the market will spark a wave of innovative research products in which “premium” services, including personalization, interactivity and distribution across print, Web and digital channels, will be critical for commercial success.
-- Research businesses that combine recurring revenues with positive margins will likely be able to reinvest, gaining further competitive ground. One key to this will be managing the cost base in a multi-channel distribution environment.
Download The Coming Revolution in Investment Research Distribution now: http://content.quark.com/EquityResearch.html.
Overview of Commission Unbundling
Equity research is a $30+ billion industry generated through two types of commission: execution services (trading, clearing, settlement) and non-execution services (primarily research). Historically both types of commission have been combined into one transaction. However, new regulations in the United States and Europe require that execution and non-execution services be separated or “unbundled.” Asset managers can now choose research providers for each transaction rather than being required to pay for research from the investment bank handling the equity trade.
About the Author
Neil Scarth is a principal at Frost Consulting & Advisory (http://www.frostconsulting.co.uk/) who has spent 25 years studying asset management and investment banking in Europe and North America. With experience running equity businesses at global banks and launching and managing various asset management products, Neil has comprehensive knowledge of the strategic and competitive framework that governs the inter-relationships between plan sponsors, asset managers and investment banks. He is a member of the UK Investment Management Association's Research Review Advisory Panel and holds an MA from the University of Southern California and a BA from Carleton University.
The Coming Revolution in Investment Research Distribution was commissioned by Quark Software Inc., provider of publishing solutions for financial services institutions. To learn more about Quark’s solution for Investment Research Reporting visit: http://www.quark.com/research.
About Quark Software Inc.
Quark’s software enables organizations of all sizes to meet customer demand for engaging, relevant communications when, where and how they want them. Our solutions combine the power of XML with flexible layout and design to automate the delivery of customer communications to print, Web, and interactive experiences on the latest digital devices. Financial services firms, manufacturers, and governments around the world rely on Quark solutions to elevate customer communications to new levels, reduce time to market, and lower costs.
# # #
Quark and the Quark logo are trademarks or registered trademarks of Quark Software Inc. and its affiliates in the U.S. and/or other countries. All other marks are the property of their respective owners.