The sell-side research business model is still evolving. People have pretty much concluded that there is a lot of value to sell-side research--witness the recent insider trading scandal--but the issue of how to value that research remains. It is tricky. The latest twist is that more buy-side firms are trying to monitor the effectiveness of all those sell-side ideas they receive. Many are considering new software that provides a host of metrics. At a minimum, the new tools can help managers keep up with all those analysts and their recommendations. It can provide a nice research tool, when looking for top sell-side analysts, for example. The hope among some buy-side managers is that the rise of such an approach will impose a new discipline on the sell-side. Instead of sending out sales staff with every possible piece of salable research, the buyers would appreciate a more thoughtful approach. The sell should reflect some conviction.

For more:
- here's a piece from Wall Street & Technology