Month: January 2020

Some investors say they are benefiting from new regulations that have reduced analyst coverage of stocks ByJulie Steinberg and Paul J. DaviesJan. 13, 2020 7:26 am ET SAVEPRINTTEXT Hedge funds are cashing in on an unintended consequence of European financial regulations on investment research: Less information about some stocks. Put in place two years ago, the regulations, known as the European Union’s second Markets in Financial Instruments Directive, or Mifid II, require banks to charge fees for stock... Read more

At our recent client summit in New York City, we heard about storytelling from experts across multiple verticals. Be it marketing, public relations, or investor relations, the message was clear—the art of storytelling is alive and well in digital communications today, with new tools and tactics to engage your audience. But too often in IR we let the quarterly cadence of reporting rule the calendar and govern our tactics, falling back on the tried and... Read more

Boutiques hit by ‘perfect storm’ two years after introduction of EU market rules Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.comT&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here. https://www.ft.com/content/1b7986ca-13e1-4d16-9d8e-37f1136e238e Boutique research... Read more

Maybe you haven’t noticed, but very slowly and gradually a big part of your day-to-day meetings have turned into remote meetings. Since a lot of businesses nowadays are global, teams work together on projects even when they are located in different parts of the world. We’ve gone from face-to-face meetings to videoconference stand-ups, from crowded office buildings to home offices, from local and in-room meeting participants to flexible, remote international teams. Why would businesses prefer... Read more

Even larger companies are affected as investment banks retrench Investment banks’ cuts to their research departments have begun to weigh on their coverage of even Europe’s largest companies, as regulatory and commercial pressures force them to retrench from unprofitable business lines. The average number of analysts who cover European companies with a market capitalisation of $100bn or more has dropped 22 per cent since 2011, according to StarMine numbers compiled by Bank of America. Those... Read more

Data and analytics key to identifying new investors Sponsored content Mifid II may come from Europe but it has influenced investor relations all over the world, including in Asia. Increasingly, companies are finding it difficult to fill roadshow schedules and identify new investor targets in the region, says Matthew Rafter, vice president at Nasdaq IR Intelligence in Asia-Pacific.  ‘When Mifid II came out in January 2018, we didn’t see an immediate impact on our client... Read more

Half of IROs do not take a kindly view of the far-reaching European legislation Since its implementation in January 2018, Mifid II has slowly sown its influence across the global capital markets. At first, IR professionals reported no change to their day-to-day jobs. Little by little, however, the new regime started to influence IR activity. Reports emerged of difficulty filling roadshow schedules, patchy attendance at investor conferences and more direct contact with the buy side.... Read more

LONDON (Reuters) - Australian investment bank Macquarie Group (MQG.AX) said on Tuesday that it will scale back its cash equities businesses in most areas outside the Asia Pacific region as tougher regulations bite. The bank, which employs about 700 people in cash equities, is expected to cut 100 jobs in London and New York, a source with direct knowledge of the matter told Reuters, adding that it will have “smaller teams” in those locations to... Read more

New survey investigates global IR trends Following the arrival of Mifid II, UK companies are more likely to have lost analyst coverage than their European counterparts, according to new research. More than half of UK companies (52 percent) say the number of sell-side analysts covering them fell over the last year, reports Citigate Dewe Rogerson in its annual survey of IR professionals. By contrast, only 39 percent of non-UK European companies report a drop in... Read more

New research finds half of IROs have negative impression of regulation’s impact IROs used a recent survey about Mifid II to let off some steam about the European regulation. Half of IR professionals say they have a negative view of the impact of Mifid II, while just 14 percent take a positive view, according to a new research report from IR Magazine. The research polled 79 IROs on their feelings about Mifid II and its impact on... Read more