The Markets in Financial Instruments Directive (MiFID II) is expected to have a global impact on how the buy-side consumes sell-side research. The quest for greater transparency has brought into force several new guidelines. One of the key changes includes unbundling of “trade execution commissions” from “research commissions.” Asset managers will no longer be able to combine payment for research services with trading commissions, but will have to pay for research separately. Under the new regime, the cost and price of research will no longer be opaque and research content will need to be more differentiated and bespoke, in order to be successfully monetized.
Do you fully understand the new rules and how they will affect you? The future of the financial landscape is changing, but there are some clear benefits that lie ahead.
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