Whether preparing for MiFID II or implementing best practices, buy-side firms are enhancing their broker votes with quantitative data regarding the brokerage research that they consume.
“A lot of what is happening under MiFID II in Europe really is a formalization of what are best practices in many firms,” said Mike Stepanovich, CEO of ONEaccess at Visible Alpha.
The ultimate goal of adding a research-valuation process to the broker vote is to have the clearest picture of which broker resources the firm has consumed before the vote.
“If firms purely rely on the qualitative outcome of their broker vote, they actually might stop some meaningful broker relationships that they are unaware of,” he said.
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