Living with MiFID II: Trials and tribulations of research reform
About a month into MiFID II, buyside and sellside companies across the globe are feeling the pressure of research unbundling. Inevitably, more cuts to coverage are in the pipeline. Meanwhile, the failure of about 12 countries to integrate MiFID II into local law raises risks of losses for their companies.
Pressure is pushing down on research industry
As MiFID II matures, pressure mounts. Banks including UBS may see a short-term research-revenue hit due to bill timings. Others, such as Nomura, may seek to shake up their global research operations. Equities trading is affected too. MiFID II may pressure some already challenged by low volatility. For example, Evercore ISI closed its European trading unit on insufficient volume pre-MiFID II. Meanwhile, data aggregators, such as Visible Alpha, are emerging as one of the rule’s biggest beneficiaries.