Increased transparency and new regulations could come at a cost.
MiFID II continues to loom heading into year’s end, with many seeing the implementation of the regulations as a double-edged sword. For the financial services industry, the new legislation will herald unprecedented Compliance measures and rules for venues. The new rules could also lead to the loss of thousands of jobs in the industry.
The primary directive of MiFID II will be to support greater transparency across derivatives and futures markets, among others. The reporting or disclosure of additional components, such as research spending, are also expected to help improve these measures. What is unclear however is how industry venues will react to this new regime, and what the consequences will be in terms of spending, personnel, and trading volumes.
Job losses
It is plausible to assume that the launch of any new regulatory regime will create short-term turmoil and periods of adjustments. However, the most immediate may be the gutting of research spending from banks. According to the McKinsey & Co. study, new regulations in Europe stifling free research will lead to the axing of hundreds of analyst jobs as banks plan to trim upwards of $1.2 billion in research spending.
This estimate was echoed in a survey from Greenwich Associates, which also saw a 7 percent drop in commission spending for European firms and 5 percent for US ones. Perhaps more problematic is the ability of US firms to sell research to their European clients given new the constraints, per a Bloomberg report.
Given the impact of demand and a premium for publicly disclosed research, the number of asset managers may also take a hit with MiFID II’s implementation this coming January. This may be the case in Europe, with southern Europe perhaps feeling the worst of this impact. Additionally, portfolio managers will be facing additional barriers, namely in regard to their classification as ‘product distributors’.
London not feeling the love
In terms of trade volumes, the one locale poised to lose the most business is London. After last month’s round of exodus plans announced by lenders in the UK capital due to Brexit, the city could cede business to other global hubs. One reason for this is to avoid having to deal with multiple regulatory regimes, a problem for many firms.
While many European venues, particularly in the derivatives industry, have been hoping for a delay regarding MiFID II, it seems unlikely that the date of January 3 2018 will be moved. Rather, venues are forced to step up their efforts towards compliance with the new laws, with some banks even toying with the notion of making MiFID II their global standard.
MiFID II continues to loom heading into year’s end, with many seeing the implementation of the regulations as a double-edged sword. For the financial services industry, the new legislation will herald unprecedented Compliance measures and rules for venues. The new rules could also lead to the loss of thousands of jobs in the industry.
The primary directive of MiFID II will be to support greater transparency across derivatives and futures markets, among others. The reporting or disclosure of additional components, such as research spending, are also expected to help improve these measures. What is unclear however is how industry venues will react to this new regime, and what the consequences will be in terms of spending, personnel, and trading volumes.
Job losses
It is plausible to assume that the launch of any new regulatory regime will create short-term turmoil and periods of adjustments. However, the most immediate may be the gutting of research spending from banks. According to the McKinsey & Co. study, new regulations in Europe stifling free research will lead to the axing of hundreds of analyst jobs as banks plan to trim upwards of $1.2 billion in research spending.
This estimate was echoed in a survey from Greenwich Associates, which also saw a 7 percent drop in commission spending for European firms and 5 percent for US ones. Perhaps more problematic is the ability of US firms to sell research to their European clients given new the constraints, per a Bloomberg report.
Given the impact of demand and a premium for publicly disclosed research, the number of asset managers may also take a hit with MiFID II’s implementation this coming January. This may be the case in Europe, with southern Europe perhaps feeling the worst of this impact. Additionally, portfolio managers will be facing additional barriers, namely in regard to their classification as ‘product distributors’.
London not feeling the love
In terms of trade volumes, the one locale poised to lose the most business is London. After last month’s round of exodus plans announced by lenders in the UK capital due to Brexit, the city could cede business to other global hubs. One reason for this is to avoid having to deal with multiple regulatory regimes, a problem for many firms.
While many European venues, particularly in the derivatives industry, have been hoping for a delay regarding MiFID II, it seems unlikely that the date of January 3 2018 will be moved. Rather, venues are forced to step up their efforts towards compliance with the new laws, with some banks even toying with the notion of making MiFID II their global standard.
EU Parliament Imposes €10,000 Cash Payment Limit in New Anti-money Laundering Legislation
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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