Regulators question conflict of interest in bundling research with trade execution flow.
Boston, October 21, 2015 – Research and related services have been bundled with trade execution flow since the ‘70s. Now the Markets in Financial Instruments Directive (MiFID II) working its way through the European regulatory process aims to clearly separate the purchase of research and related services and trade execution flow. This could have global repercussions for broker-dealers, investment firms, and independent research providers, especially since many firms operate globally, and international regulators may adopt similar approaches.
This research looks at the latest call for unbundling in the European Union and its repercussions across major market participants. It is based on 2015 discussions with global and local asset managers, brokers, IRPs, and vendors to understand their perspectives and insights on the pending MiFID II regulation.
This 31-page Impact Note contains four figures and five tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report.