Systems and method for determining the cost of a securities research department to service a client of the department

摘要

In one technique, the time spent by each analyst of the department servicing the client over a specified period of time may be estimated. This value may then be adjusted based on the compensation of the analysis provider (or providers) servicing the client. Then, the compensation-weighted time of each analyst provider that serviced the client may be summed to thereby arrive at an estimate of the time and cost to service the client. In another technique, the standard cost per unit of different types of client touch that the equity research department produces is estimated. Then, the number and type of client touches a particular client receives over a given period of time (e.g., three months, one year, etc.) can be determined and multiplied by the standard cost per touch for the different touch types of to arrive at the total cost of servicing the client over the time period.