Institutional Brokers Send One Million Stock Trading Ideas to Clients

25 May 2010

The Trade Idea Monitor (the TIM) from youDevise Ltd. announced that institutional brokerage firms have now sent more than one million stock trade ideas to their clients since the service began operations in January 2005.

Colin Berthoud, founding partner of youDevise and co-developer of the TIM, also said idea volume has surged since the Greek financial crisis as brokers find the TIM to be the fastest way to send trade recommendations to their clients around the world. 

Trade ideas totaled 944,334 at the end of the March 31, 2010 quarter, added another 33,496 in April 2010, and surged 22,170 the first 12 trading days of May 2010.  The one millionth idea was a short on a European stock contributed in Madrid by Luis Rioja of Grupo Santander. 
 

"We are delighted to work with youDevise and the TIM provides an efficient and transparent way of delivering and servicing clients with our conviction calls.”
 

Hitting the one million mark reflects the increased acceptance and adoption of ideas as a value-creating service for the sell side that enables the buy side to improve short or long term returns.  More than 450 sell side and 150 buy side firms use the TIM to create and manage their trade ideas, respectively.
 

Sell side users include all the major global firms, as well as a growing number of national and boutique firms in the U.S., Canada, U.K., Europe and Hong Kong.  Buy side users include all major hedge and quant fund, as well as more traditional institutional investors.
 

Stock trading ideas, or trade ideas, synthesize all of a brokerage firm’s knowledge into an actionable buy / sell recommendation tailored for each client to whom it is sent.  Trade ideas are time sensitive, indicate how much money should be committed, and are typically paid for based on performance.
 

youDevise research shows that more than 70% of TIM idea contributors outperform their regional indexes.