MiFID II drives liquidity drought as broker research coverage falls

Mid-cap liquidity suffers most

Mike Sheen
MiFID II has seen buy-side firms reduce the amount of external research they consume

MiFID II has seen buy-side firms reduce the amount of external research they consume

Almost eight months after the introduction of MiFID II, the regulatory framework has already contributed to a reduction in trading liquidity and broker research across most areas of the market.

MiFID II, which took effect on 3 January, requires buy-side firms to pay for research as an 'unbundled' product, separate from other broker services. BofAML sees analyst exodus as MiFID rules hit research...

To continue reading this article...

Join Investment week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space

  • Get ahead of regulatory and technological changes affecting fund management

  • Important and breaking news stories selected by the editors delivered straight to your inbox each day

  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts

  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Asset Managers

The Financial Conduct Authority's headquarters

FCA says Investment Firm Prudential Regime will require individual disclosure

Comes into effect 1 January 2022

clock 26 November 2021 • 1 min read
FCA streamlines decision-making process

FCA streamlines decision-making process

'Concern of procedural fairness'

clock 26 November 2021 • 2 min read
The FCA also purchased 307 Samsung phones and 39 iPhones

FCA pours £5m into laptops in bid to ramp up hybrid working

Move follows watchdog's warning on remote working

Pedro Gonçalves
clock 26 November 2021 • 3 min read