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Fund managers criticise deteriorating quality of research Heavy hitters in the investment industry have deplored the exodus of sellside analysts, a trend exacerbated by new EU-wide rules. The introduction of Mifid II in January required investment banks and brokers to separate the cost of research from trading activity offered to asset managers. It had been expected that it would prompt more analysts to leave the industry and this was happening, said several fund managers. “We... Read more

Asset managers cut fees for share trading after introduction of Europe’s Mifid II 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/5c32d1c8-658c-11e8-90c2-9563a0613e56 Investment... Read more

Corporate access: death of the go-between? Investors and portfolio companies increasingly prefer to arrange meetings directly In the months just before the introduction of Mifid II — the wide-ranging markets regime put in place in Europe in January — much of the discussion among asset managers was about the treatment of research payments. Another change received a lot less coverage but it has already led to significant behavioural shifts in the investment industry and beyond.... Read more

Mifid II crossroads – a fair price for research? Fund managers may be forced to wake up to the true price of broker insight, says Chris Turnbull, co-founder of ERIC Over three months on from the implementation of Mifid II, the market continues to grapple with what constitutes a fair price for research. The cost of written research fell to surely unsustainable levels in the lead up to Mifid II implementation. Now is the time... Read more

Companies are bypassing their banks and brokers to arrange meetings and calls directly with potential investors, in response to new European rules that aim to make markets more transparent and reduce conflicts of interest. Mifid II, the sprawling EU markets regulation that came into effect this year, requires banks and brokers to charge fund managers separately for analyst research as well as for “corporate access”, such as face-to-face meetings with company management. But some fund... Read more

MiFID II: What It Means For Your Business And How To Be Compliant Dan Sincavage C0-Founder Tenfold https://www.tenfold.com/business-development/mifid-ii-means-business-compliant Markets in Financial Instruments Direction II, or MiFID II, is an expansive set of regulations governing EU investment firms that goes into effect on 3 January 2018. It has been under development for nine years, being formally approved in 2014, and replaces the original MiFID enacted in 2007. The original law sought to harmonize financial intermediaries and... Read more

A Goldman Trading Desk That Once Had 500 People Is Down to Three Many Wall Street traders are concerned about being replaced by machines in the future, but at one Goldman Sachs Group Inc. unit it’s already happened. “Equity trading: 15-20 years ago we had 500 people making markets in stocks. Today we have three,” Goldman Sachs President David Solomon said Monday at the Milken Institute Global Conference in Beverly Hills, California. Solomon said the introduction of... Read more