System and method for exchanging institutional research and trade order execution services

A method for facilitating exchange of institutional research and trade order execution services between a plurality of asset managers and a plurality of brokers, the method comprising:

• tracking, using a research exchange unit accounting computer processor, trade orders executed by the plurality of brokers on behalf of the plurality of asset managers;
• crediting each asset manager of the plurality of asset managers with research exchange units with each broker of the plurality of brokers based on the trade orders executed by each broker on behalf of the each asset manager and tracking each asset manager's total research exchange units with each of the brokers, wherein the total research exchange units for each broker are redeemable by the each asset manager for research items produced by the each broker;
• receiving for each broker of the plurality of brokers a research item produced by the each broker;
• storing the research item of each broker;
• receiving for each broker of the plurality of brokers a research exchange unit value for the research item of the each broker;
• receiving selections by the plurality of asset managers of the stored research items;
• and
• delivering, for each selection, the selected research item to the selecting asset manager and subtracting from the selecting asset manager's total research exchange units with the broker that
• produced the selected research item, an amount of research exchange units equal to the research exchange unit value of the selected research item,
• wherein crediting each asset manager of the plurality of asset managers with research exchange units with each broker of the plurality of brokers based on the executed trade orders comprises, for each trade order, crediting an amount of the research exchange units based on at least one of the number of shares in the each trade order, the spread on a security of the each trade order, whether or not the executing broker makes a market in a security of the each trade order, whether or not the each trade order requires special handling by a broker or algorithm, and whether or not the each trade order requires a pass through to another executing broker.

A system for facilitating exchange of institutional research and trade order execution services between a plurality of asset managers and a plurality of brokers, the system comprising:

• a research exchange unit accounting processor that
• tracks trade orders executed by the plurality of brokers on behalf of the plurality of asset managers;
• credits each asset manager of the plurality of asset managers with research exchange units with each broker of the plurality of brokers based on the trade orders executed by each broker on behalf of the each asset manager, wherein the research exchange unit accounting processor credits each asset manager of the plurality of asset managers with an amount of the research exchange units with each broker of the plurality of brokers based on at least one of the number of shares in a trade order, the spread on a security of a trade order, whether or not the executing broker makes a market in a security of a trade order, whether or not a trade order requires special handling by a broker or algorithm, and whether or not the trade order requires a pass through to another executing broker;
• and
• tracks each asset manager's total research exchange units with each of the brokers, wherein the total research exchange units for each broker are redeemable by the each asset manager for research items produced by the each broker;
• a research database that electronically receives and stores for each broker of the plurality of brokers a research item produced by the each broker;
• a research exchange unit pricing processor that receives for each broker of the plurality of brokers a research exchange unit value for the research item of the each broker;
• and
• a research query and order processor that
• receives selections by the plurality of asset managers of the stored research items;
• and
• delivers, for each selection, the selected research item to the selecting asset manager,
• wherein, upon the each selection, the research exchange unit accounting processor subtracts from the selecting asset manager's total research exchange units with the broker that produced the selected research item, an amount of research exchange units equal to the research exchange unit value of the selected research item.

A system for facilitating exchange of institutional research and trade order execution services between a plurality of asset managers and a plurality of brokers, the system comprising:

• a research exchange unit accounting processor that is in communication with a financial record database storing financial data records;
• a database manager for creating, changing and deleting financial data records, the database manager including a queue for receiving instructions from the research exchange unit accounting processor for processing, wherein said instructions when processed result in adding, changing, or deleting to at least one financial data record,
• the research exchange unit accounting processor being programmed to
• receive input reflecting trade orders executed by the plurality of brokers on behalf of the plurality of asset managers,
• issue instructions to alter one or more financial data records in the financial record database to credit each asset manager of the plurality of asset managers with research exchange units with each broker of the plurality of brokers based on the trade orders executed by each broker on behalf of the each asset manager, wherein each asset manager of the plurality of asset managers is credited with an amount of the research exchange units with each broker of the plurality of brokers based on at least one of the number of shares in a trade order, the spread on a security of a trade order, whether or not the executing broker makes a market in a security of a trade order, whether or not a trade order requires special handling by a broker or algorithm, and whether or not the trade order requires a pass through to another executing broker, and
• issue instructions for management of financial data records reflecting each asset manager's total research exchange units with each of the brokers, wherein the total research exchange units for each broker are redeemable by the each asset manager for research items produced by the each broker;
• a research database that electronically receives and stores for each broker of the plurality of brokers a research item produced by the each broker;
• a research exchange unit accounting pricing processor that receives for each broker of the plurality of brokers a research exchange unit value for the research item of the each broker;
• and
• a research query and order processor that
• receives selections by the plurality of asset managers of the stored research items;
• and
• delivers, for each selection, the selected research item to the selecting asset manager,
• wherein, upon the each selection, the research exchange unit accounting processor subtracts from the selecting asset manager's total research exchange units with the broker that produced the selected research item, an amount of research exchange units equal to the research exchange unit value of the selected research item.