As we eagerly await the final verdict on unbundling under MiFID II, here is a list of 10 things we can expect for research while we’re expecting ESMA’s much-anticipated release. 1. January 2017 is here to stay The delay of the final text from the original June deadline, was the subject of much attention earlier…
Read MoreWith the potential to affect the largest change to the industry since the Big Bang, MiFID II will dramatically alter the market for investment research across Europe. Academics Alastair Haig and William Rees remind us that we are already in the midst of a fundamental change in the operation of this market. Commission Sharing Agreements (CSAs) were…
Read MoreThe mid-tier and local broker A little discussed impact of MiFID II is its impact on the mid-tier brokers and smaller local brokers throughout Europe. Typical fully integrated trading and research operations, they receive both CSA payments and trading currently to pay for their services. When execution and research become unbundled then these two activities…
Read MoreThe Big Bank It is easy to say that banks will call the shots and lets wait and see how they respond. This is usually the case. The banks always have a plan. However, for the first time in my career I am not so sure. We have seen some early responses: the rate card…
Read MoreThe research payment account (RPA) is coming. For a 446 page document which has the potential to shake capital markets in Europe, never has so much attention been focused on one word within one paragraph (to the detriment of all the other changes the document outlines). This word is ‘linked’ <not be linked to the…
Read MoreThe rumour mill may be proven right yet again. There has been growing speculation that ESMA will be forced to delay the release of the draft technical standards until September. This now appears to be an extremely likely outcome as the chairman of ESMA, Steven Maijoor, wrote to the European Commission warning of a delay….
Read MoreHas the ability to pay away for research had an impact on the financial research market? As part of their ongoing study into the market for investment research, Alistair Haig and Professor Bill Rees surveyed 40 UK buy-side institutions to evaluate the impact of Commission Sharing Agreements (CSAs). The resounding answer is “yes”. The CSA payment…
Read MoreTABB group spoke with over 50 asset managers trading European equities on the consequences, intended or otherwise, of research and execution unbundling. The report shouldn’t be ignored - the funds manage $25.5trn in total. That being said, the report’s headline stat doesn’t come as a huge surprise: 67% of participants believe that research payments will decline. Nearly…
Read MoreMarkus Ferber is right to think about the impact of MiFID II on small and medium businesses but he’s forgetting an important group - the SMEs who produce the research in question. The independent providers have been operating at a significant disadvantage to banks and brokers who have been giving away research for free for…
Read MoreToday’s feedback from the FCA on ESMA’s technical advice is a must read for anyone who cares on dealing commissions. CSAs are out and Research Payment Accounts (RPAs) are in. This won’t be taken well by many in the industry who have argued that CSAs are a good existing process that should be enhanced not…
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