MiFID II rules draining SMID-cap stock liquidity

Investors believe quality of research has also declined

MiFID II has reduced liquidity and demand for small and mid-cap stocks, a new report has revealed.

Most UK fund managers, and those running their underlying companies, believe MiFID II has reduced liquidity and available research relating to small and mid-sized (SMID) firms since taking effect in January 2018. The YouGov survey of 102 UK fund managers and 105 listed companies, commissioned by Peel Hunt and the Quoted Companies Alliance (QCA), found 62% of respondents believe the quality of research in the SMID space had diminished due to the directive. 'Recessions lie ahead': Global liquidity slowing at fastest rate since 2008 According to the survey, MiFID II: The Search For Re...