Weeden out the Competition

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New York – Throughout this year we have seen a number of brokers expand their research offerings to entice more trade volume or enhance the vote.  Among the success stories in adding research has been the progress made by Weeden & Co. Of course, Weeden has been accumulating research over a long period of time, starting with offering The Leuthold Group.

This year Weeden hired Retail analyst Amy Noblin in March, who was subsequently named #1 in the Wall Street Journal’s Best on the Street Analyst Survey in May.  In January, Weeden hired Christopher Harvey an Investment Strategist and in September Weeden hired Brian Raabe as Director of Research. Brian had been Co-Founder and Director of Institutional Sales at Sector Sovereign, whom Weeden had earlier formed an exclusive trading and marketing partnership with.

Other transactions in the broker/research space last year, include but are not limited to:

  • In January, 2010 Hudson Holdings, the publically traded parent of execution provider Hudson Securities, announced that it was acquiring boutique investment bank and research provider Next Generation Equity Research for an undisclosed sum.
  • In March, 2010 BTIG, announced that it was expanding its business by adding a fundamental equity research group division initially focused on the telecommunications, media, cable and satellite industries .  The firm hired research industry veterans Richard Greenfield and Walter Piecyk to head up the effort.
  • Also in March, Instinet announced the launching of a new corporate access service called Meet the StreetTM, thus joining Liquidnet, BNY Convergex and Capital Institutional Services (CAPIS) in recent launches of corporate access products.  This initiative is in addition to the Instinet Access™ alternative research platform.
  • In June, 2010 Capital Institutional Services (CAPIS) announced that it had added Zelman & Associates to it Alliance platform.  Through this platform, CAPIS provides buy-side clients a number of independent research products, from broad based platforms to sector specialists, channel check services, corporate access and bespoke research providers.
  • In early July, 2010 Greenwich-based Weeden & Company announced that it had formed an exclusive trading and marketing partnership with independent research provider, Sector & Sovereign.  This initiative is in addition to the hires that have taken place in recent years, as Weeden has quietly transformed its agency brokerage business by adding analysts and building a more traditional boutique investment banking firm.
  • Later in July, Investment Technology Group, Inc. (ITG) announced the hiring of Jamie Selway as a Managing Director to provide ITG clients with analysis of market structure and potential developments in the regulatory environment. This follows ITG’s move in late April when it announced a strategic partnership with Disclosure Insight, an independent firm specializing in providing forensic research.  ITG made an undisclosed investment in Disclosure Insight and plans to market the firm’s research to its buy-side clients.

Including the changes in 2010, Weeden’s institutional research products include:

  • Sector & Sovereign
    • Todd Bault covering Global Insurance
    • Richard Evans covering Healthcare
    • Artur Pylak covering TMT
    • Scott Hinds covering Economics and Demographics
    • Paul Sagawa covering TMT
  • Geoff Kieburtz covering Oilfield Services
  • Charles T. Maxwell, Senior Energy Analyst
  • Amy Noblin, Senior Retail Analyst
  • Javier Escalante covering Consumer Staples
  • Mimi Pham covering Medical Devices
  • Christopher Harvey – Investment Strategy
  • Steve Goldman – Market Strategist
  • Kathryn Welling ex-Barons journalist, welling@weedon
  • Richard Guastello – Special Situations and Risk Arbitrage
  • The Leuthold Group
  • Steve Leuthold covering top down Quantitative Research
  • The Leuthold Group has 7 analysts

We expect that the trend towards adding research and other services to entice new customers or to hold onto existing customers will continue in 2011. One broker indicated last year that clients were getting less able to justify execution-only venues and were seeking other services, either from existing trading partners, or by developing new relationships with brokers that had those services.

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