Sell & Buy Side Firms Show +500% Annual Rise

Equity trade ideas have become one of the fastest growing investment products in the Asia Pacific region, with recent growth spurred by market volatility and worldwide changes in the financial services industry, according to youDevise Limited.  Trade ideas are short-term, client-specific trading recommendations, developed by institutional brokers for their clients, to enhance buy side performance and generate sell side commissions. youDevise’s Trade Idea Monitor (TIM) is the leading “alpha capture” system used by more than 6,600 traders and portfolio managers at 419 brokerage firms, hedge funds, and other money managers, to create, distribute, and track ideas.

“As of October 2008, the number of trade ideas on Asia Pacific stocks in the TIM had grown the fastest of all major global regions — up 525%, to 82,622, equal to 22% of all trade ideas in the database,” said Frances Tse, head of youDevise’s Hong Kong office.

“More than 40% of the buy side firms using the TIM pay their brokers for ideas on Asia Pac stocks, typically allocating 30% to as much as 100% of commissions based on the performance,” she said. “As a result, local and global Asia Pac brokers and money managers are fast-becoming leaders in the worldwide adoption of trade ideas and alpha capture systems.”

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