Forefront Communications

Traders: How MiFID II Will Affect U.S. Brokers and the Research They Produce


Mark Dowd

Mark Dowd

With MiFID II set to go into effect in Europe January 3, 2018, things are about to change as to how the buy-side pays for its research from the sell-side across the Pond. So how does the 21st century post-MiFID II broker survive, yet alone, thrive?

The obvious answer would appear to be technology, according to many. Liquidnet’s Rebecca Healey said that technology will enhance research provision – and research selection. The introduction of metadata in both the provision and selection process will enable firms to hone in on the research they need.

Mike Stepanovich, CEO of Visible Alpha’s ONEaccess business said that ever since Regulation FD and the Global Analysts Research Settlement in 2003, brokers have had to compete on the value of their research, insight and services. “We already live in a world where only the best research providers and offerings survive,” Stepanovich said. “However, in a MiFID II world, we expect even more scrutiny on research spending from the buy side. To remain competitive, research providers will need a better understanding for how their services are being consumed and valued.”

Read the full article here.

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