Time Is Running Out for Asset Managers to Fix Research Payments
“What’s the biggest danger? That no one shows their cards until the day before and we’ve got chaos,” says Mike Carrodus of Substantive Research.
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“What’s the biggest danger? That no one shows their cards until the day before and we’ve got chaos,” says Mike Carrodus of Substantive Research.
To solve the disconnect, shortly before MiFID II was implemented, the SEC issued a ‘no action’ letter, which acted as a ‘carve out’ that allowed European asset managers
Some managers pay as much as 13 times more than peers for index services, according to Substantive Research.
<ul> <li aria-level="1"><span>For Pricing and Reference Data, some institutions can pay up to 10 times more than peers</span></li> <li aria-level="1"><span>For Index Data, some institutions are paying over 13 times (1300%) more than peers</span></li> <li aria-level="1"><span>For Ratings Data, some institutions are paying over 3 times more than peers </span></li> </ul>
The MiFID II regulations that came into effect in Europe in January 2018 unbundled trading and research and pushed almost all European asset managers