Has anyone here used an Expert Network for research and quant analytics?
Yes sure, they have and they may be in jail now or those in them are in jail for insider trading 🙂 Do a google search!
this is baloney. I am one of those experts and I work with a number of these providers – Guidepoint Global, Maven Research, Ridgepoint Research. These are probably the best of the lot and they screen their experts both for quality and compliance. Now, as always, there are lousy expert providers and there are lousy experts. However, if you work with one of these three companies you should be good on both counts.
In a post Galleon world, the SEC has placed expert networks under higher scrutiny for concerns of insider trading. However, as Lutz has pointed out some of the more reputable firms like GLG have internal policies and procedures to try and mitigate these risks. The key to using expert networks is for you as an adviser to have your own internal policies and procedures for detecting, avoiding, and dealing with the receipt of material non-public information. In such a close knit industry one might inadvertently stumble on MNPI just overhearing a conversation at lunch. Having that information isn’t what is illegal–it’s acting on it before it becomes public knowledge.
What are the implications for an external consultant (ie not working in any company or association) for giving advice thru Expert networks? Does that also fal under the purview of insider trading?
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!