--- title: Research Pricing Vexes Sell Side description: A research buffet is likely to win over an à la carte model. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-515741052-1.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/research-pricing-vexes-sell-side#popup-newsletter) #### Want the latest news on securities markets -- FREE? 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Sonali Theisen, global head of market structure & data science at Citi jokingly said that she did not want to address how her firm is approaching the issue with a 10-foot pole but she did share her thoughts on from an industry perspective during a MiFID II for Non-Europeans panel discussion last week hosted by Bloomberg. ![](https://static.hsstatic.net/BlogImporterAssetsUI/ex/missing-image.png) Sonali Das Theisen, Citi "There are so many hybrid research functions that large sell-side firms are still trying to figure out where we think it fits," she said. "We have desk analysts that work alongside our clients to work on a name and take down a risk. It is almost impossible to quantify that resource." The chances of the sell side developing an a la carte menu of individual research products is slim, according to Neil Scarth, principal at Frost Consulting and who spoke on a separate panel. The UK's Financial Conduct Authority, considered one of the most aggressive regulators, rejected including such a mandate for the sell side in its 600-page implementation document. "This comes from the recognition that even they recognize that the very same thing can have a very different value to different people," he said. "The value of a fantastic piece on Facebook to a deep value investor probably is not very high because deep value investors can never own the stock but a growth investor might find it incredibly valuable." Meanwhile, the sell side may look to develop tiered-access offering, aspirational pricing, and price-price taking models, according to fellow panelist Neil Shah. Tiered-access would not be a novel model, added James Bennett, managing director, Markets at Greenwich Associates. "We're all familiar with the American Express's green card versus gold card versus platinum card," he said. "It means a different level of service and value for different thresholds." One potential scenario for a bulge-bracket firm would be to provide global access for 'X' hours and access to sales coverage on a corporate basis, Shah offered. Taking an aspirational approach, a sell-side research provider could value their research at $100,000 but start at a low price, such as $25,000, and evolve the price over time, he added. And with a price-taking model, the sell side firm would simply price its research and see if any buy-side firm bites. Of the three models, Greenwich Associate's Bennett believes that the tiered-access model becoming the dominant model as sell-side providers work with independent research providers to deliver an enhanced research offering. 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