Senior decision makers at brokerage firms face a common problem. Investment in research remains a strategic imperative, but budgets remain tightly constrained, and generally speaking, on a downward trend. In particular, the changing global economic order and the dynamic nature of the financial markets call for a strategic rethink on how research is produced, what research produces, and how costs are aligned to revenues.

 In this paper, we examine the different options open to the leadership team at sell-side firms that desire to maximize research-driven revenues, while keeping costs under control. In particular, we focus on:

1. Goal setting

2. Research-plan formulation

3. Maximizing cost efficiency and product flexibility

Authors:

Andrew Houston, CFA, Co-founder, Amba Research

Ravi Sundararaman, Global Head of Product Management, Amba Research