One of the leading providers of independent research, Standard & Poor’s, announced today that it has signed an agreement to provide equity research to Goldman, Sachs & Co. under the terms of the Global Research Settlement.
S&P was selected by Henry A. Frantzen, Goldman’s independent research consultant, to provide fundamental research reports and “Buy / Sell / Hold” recommendations on the more than 850 stocks covered by Goldman’s own analysts. S&P’s over 80 equity analysts provide equity research and recommendations on close to 1,300 domestic and foreign stocks in more than 120 industries. S&P will begin delivering this research to Goldman beginning July 26th, 2004.
This deal with Goldman Sachs signals the first contract that S&P has announced that is part of the Global Research Settlement — though it unlikely to be the last given S&P’s brand name and it’s broad range of fundamental research coverage. S&P’s recent announcement that it joined BNY Jaywalk should also help the independent research firm garner more settlement business.
Some market participants, however, suggest that S&P’s credit ratings business creates a potential conflict of interest concern that has kept a few consultants from choosing S&P as a research provider under the terms of the settlement.