Two former Euronext directors have launched an independent research platform specialising in European research.
James Woodley, the former head of investment funds and Pedro Fernandes, the former head of European exchange traded and structure products quit NYSE Euronext at the end of last year.
Their new venture – ResearchPool – is due to launch in the coming months and will offer a research venue for small to medium-sized asset managers, hedge funds and family offices who may find it difficult to find sufficient research elsewhere.
Speaking to The TRADE, James Woodley, director and co-founder of ResearchPool, said the idea behind the business was formulated after last year’s Fund Forum International.
He explained: “There has been a change in the research landscape. Post-crisis, the banks have reduced the numbers of analysts they have which has had a knock on effect on research.
“Now, the asset managers are thinking about how do they respond and how can they have quality control of the research they buy.”
Woodley said regulatory themes on unbundling, best execution and MIFID II have also been keen influences on the business’s strategy.
He added: “Pedro and I both worked at Euronext and decided to leave at the end of last year. At the moment, research aggregation is done by people like Bloomberg, Reuters or those with a chunky subscription model. So it is available to only the largest institutions in the marketplace.
“Who can’t get access to research at the moment? Smaller institutions and those without multiple broker accounts, retail investors.
“It is very difficult to know where to go to find that research. If you go to a large broker, it is very unlikely, unless you are client, they will give you their research.”
Woodley compares the company’s revenue model to that of online shopping marketplace Amazon.
He says: “We 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%. To be honest it is inline with online bookshops charge.”
ResearchPool has six companies lined up to go live at launch, but is still in the process of formulating its launch strategy. More details are scheduled to be announced over the summer.