Code Red Unveils IdeaNet

"We go to buy-side clients, and they direct us to the research providers and brokers they use that they want to contribute research, meeting requests and ideas over our platform. These flow directly into buy-side firms' installations of the Red Alerts research management system," Bean says, which allows them to rate and provide feedback to research providers, replacing tasks currently conducted over email, by phone or via disparate portals with a centralized process. "The research providers we have gone out to so far have said they want to work with us, because IdeaNet offers a controlled distribution with permissioning features," he says.

Though declining to specify the exact number of broker-dealers distributing research to clients via the platform, Bean says there are currently "more than 10," representing a starting point for the "25 or so providers that firms use regularly... and maybe a dozen that they use daily."

He says the vendor will initially sign up sell-side providers based on client demand, with a target of having between 75 and 100 contributors by year-end, though once the platform has gained momentum, he says the vendor may seek to expand its reach beyond just those firms specifically requested by clients.

"At some point, we envision IdeaNet becoming a marketing tool... that will in future allow the buy side to search for new research providers that they may not have an existing relationship with," to find the best providers as they move into new investments or market sectors, Bean says.

To support this process, the vendor has hired Justin Venneri, former vice president of research at BNY ConvergEx, as director of IdeaNet. Venneri, who left BNY last year and has since worked as a strategic business analyst to launch an institutional research portal for Web-based online physician community Sermo, as well as a consultant to Bulletin News, "will help manage the process of managing buy-side relationships and bringing the sell side on board," Bean says.

Code Red also recently hired Alex Synott as a consultant project manager to provide implementation and client support. Synott is also moderator of the AIT Global CIO Forum, and is chief operating officer of his own online marketing and project management company, dubbed The Telegraph Office.

The vendor originally aimed to launch IdeaNet last year (IMD, Dec. 17, 2007), but had to put the platform on hold to address other client projects. "IdeaNet was built a year ago, but we were so busy last year with Red Alerts that we didn't get to focus on IdeaNet. So it has been redesigned with a new interface, but for the same concept," Bean says.