A new pan-European platform for research in companies
Two former Euronext directors, James Woodley, former head of investment funds, and Pedro Fernandes, former head of European exchange traded and structure products, are launching a pan-European (with a potential to be global) platform, called ResearchPool, aimed at sharing and dissemination of both “priced” and “free” financial research.
The company’s ambition is to create a pan-European marketplace and open-community for financial research, allowing producers to commercialise and distribute their content while also getting a better understanding of investors’ ( both professional and retail) needs. The platform will operate on a fully transparent “pay-as-you-go” basis. The company will only get paid a charge if a transaction takes place – a small transaction fee of 75 pence per download and a commission of whatever the price is set at, at 15%.
One of the aims is to stimulate better coverage and distribution of quality research on European SMEs Growth Markets (companies admitted to trading on Regulated Markets and Multilateral Trading Facilities), thereby raising the profile of these companies with the aim of increasing the liquidity in their securities and facilitating their access to finance.
The reasoning behind this platform is the change in the research landscape. In the aftermath of the 2008 financial crisis, the banks have reduced the numbers of analysts they have which has had a knock on effect on research. Also, giving the controversial ESMA MiFID II provisions, classifying investment research received by portfolio managers as inducements, and making it subject to strict provisions which aim at unbundling trading and research fees, some fear that they would result in further decrease of analyst research in small and midsize quoted companies (read more here).
However, some academics consider that this reduction could be just temporary and could create a niche for new research providers. Indeed, ResearchPool is using this niche by ensuring that the platform includes both analyst research on companies and issuer sponsored research. The idea is that the information could be gathered in one place to be easily accessed by investors or anyone interested.
The platform will enable investors
- To access content and research by making this available to a large and diverse range of research consumers, including: retail investors, investment managers, wealth managers, financial services professionals, corporates and academics.
As to how it will work:
- Research consumers will declare their investor type and country of residence on arrival at the platform home page
- Consumers will be able to browse, search, filter and sort research through a rich range of data headings
- The platform will leverage social media and traditional media to penetrate the “Long Tail” of potential customers
- The platform will aim to build a community, particularly with the SME issuer, advisor, investors and exchange community to share through leadership
- The platform has been developed to meet eCommerce best practices and data security using latest web technology
For more information, please see a detailed description of the company here.
See also an article on ResearchPool published by “The Trade”.