Fidelity continues to tinker with research model

While the supply side research vexation continues, the buy side, as exemplified by Fidelity, seems to have a clearer idea about what to do. Fidelity has been experimenting with an unbundled sales approach, separating the costs of research from the cost of execution services. Most assume there is no going back; the sell side will just have to get over it. Fidelity's traders are now negotiating deals that have resulted in lower costs. Fidelity paid Lehman less than $7 million for research in the first year of the program. You have to think that other large fund companies are thinking along similar lines. Even more eye-catching, Fidelity is beefing up its in-house research capability. 

For more on this:
- Here's an AP article
- For more on Fidelity's research push read this.