Will MiFID II have any impact on the U.S. resesarch teams too?
I personally do not work in research, but I heard that the MiFID II rule will hit the equity research teams in Europe pretty hard.
Is the impact only restricted within EU?
More general question: What’s the future of equity research department in banks? Are they also subject to automation?
Interested monkeys!
also interested
MIFID impact on HF research resources/capabilities? (Originally Posted: 10/03/2017)
We've heard about the likely impact of unbundling commissions on sell-side research (consolidation within each industry vertical, boutiques getting squeezed), but I've been curious for some time on how the various types of hedge funds (multi-manager platforms with higher position turnover, smaller AUM or longer-term value funds, etc.) will be affected if research costs are eventually priced separately by the sell side and absorbed into the buyside P&L down the road at some point.
Even though trading commissions may be lower, how much lower will the buying power of research dollars be with a new sell-side pricing regime? Will HFs have the ability to pass research costs completely onto clients through separate research payment accounts? Combined with a declining fee environment, will this regulatory change drive further consolidation towards larger AUM funds within each market-cap bucket (i.e. large cap, SMID, blend, etc.)? Will this drive increasing research specialization by industry vertical within smaller AUM funds (i.e. focus on materials/industrials or telecom/media only)? Would greatly appreciate any thoughts on this - thanks.
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