Liquidnet’s acquisition of RSRCHXchange, a marketplace and aggregator for institutional research, allows the company’s platform to deliver a new level of research and analytics into the global investment process for its institutional investor client base. It also furthers the company’s AI strategy.
RSRCHXchange, a solution for unbundling, was created ahead of the introduction of the Markets in Financial Instruments Directive II (MiFID II) and its research unbundling requirements. Its platform, a centralised, cloud-based hub, enables providers to deliver research, and asset managers to source it. The platform is designed to use analytics to personalise each user’s experience and optimise content discovery, and to allow research providers to better monetise the value of their research, while buy-side firms purchase the research they need, when they need it. Approximately 400 research providers regularly contribute to the RSRCHXchange platform, with about 1,200 asset managers subscribing to it.
In line with Liquidnet’s FinTech strategy, the purchase of RSRCHXchange is also part of ongoing, AI-focused development. Liquidnet started down the AI route following its acquisition of OTAS Technologies in 2017, and has since concentrated on integrating AI-powered decision support and analytics into its institutional execution technology. RSRCHXchange’ s technology, research, and distribution capabilities will enable the Liquidnet AI-based analytics platform to transform the way its users source, access, evaluate, and act on data and insights to enhance investment decisions and generate alpha, according to the company.
“This acquisition brings the worlds of investment research and alternative data together in a fundamentally new approach to alpha creation. We can now support our member firms across the entire investment spectrum, from idea to implementation,” says Brian Conroy, president at Liquidnet. “By adding RSRCHXchange to our already extensive network, we are taking another important step in our mission to intelligently connect the world’s investors to the world’s investments and leverage technology to add value to each stage of the investment process.”