Dashboard takes its place on research platform

RSRCHXchange, a marketplace for institutional research, has added the RSRCHX Dashboard to its platform functionality; this enables asset managers to track firm-wide research consumption, improve the procurement process and ensure compliance with MiFID II unbundling requirements.

The MiFID II Delegated Acts (DA) published in early April, have brought long awaited clarification on research procurement processes and research payment accountsnotes RSRCHXchange. Firms will be required to put into place controls, set up management oversight and create audit trails. Investment firms will be required ‘upon request by their clients or by competent authorities, to provide a summary of the providers paid from this account, the total amount they were paid over a defined period, the benefits and services received by the investment firm’. Furthermore, investment firms must ‘regularly assesses the quality of the research purchased, based on robust quality criteria and its ability to contribute to better investment decisions’.

While research budgets are a vital necessity for asset managers, managing them can be costly and time-consuming; as a result, many firms struggle to build a full picture of their own research usage. Given the loud-based structure of RSRCHX, enhanced data is gathered automatically at the point of consumption.

Available from today, RSRCHX says its Dashboard provides asset managers with a MiFID II-compliant, more efficient and systematic way to measure research usage and rate their providers, rather than relying on broker vote systems.

Vicky Sanders, co-founder of RSRCHXchange said: “Now that the DAs are published, buy-side firms can move forward in updating their research procurement process in response to MiFID II. A deep understanding and auditable overview of what research they actually use for their investment decisions is now an essential business and regulatory requirement. Whether firms are moving towards paying for research from their own P&L or with client-funded RPAs, this Dashboard is an essential tool. By using our Dashboard, asset managers can be confident their MiFID II research procurement requirements are being fulfilled.”