In Wall Street as in any business, the client is always right, and in particular, buy-side firms which pay for research can and do dictate the how the information is packaged. In the absence of standards for more sophisticated Internet delivery, the largest fund managers are in a position to specify electronic delivery systems customized for their internal systems. Smaller fund managers get by with Internet and commingled research service access. For the sell side, customized access to research is an important incentive to attract transactions and commissions. However, an unwarranted view that some clients get first access can devalue the entire research product.
Transparency is key.
Again, terms of service can clarify the depth and breadth available to different classes of client. Standards vacuum . While more complex processes and interaction can take place on the global network, they require technical standards to make them work. It's difficult to get market participants to agree on standards since no one gains any competitive advantage from them. In fact, technology-rich institutions with proprietary systems may feel that standards level the playing field and reduce their competitive advantage.