Who wins at Mifid II?

Author: Olly Jackson | Published: 29 Jan 2018

The new Markets in Financial Instruments Directive (Mifid II) has received widespread criticism for its effects on research costs, increased transparency rules, and access to trading and clearing systems. The directive is so wide-ranging that it affects all types of investment firms. 

In the area of research, it’s believed it goes as far as causing job losses for analysts, as firms zero in on protecting their value and reducing costs, now that clients are to be charged separately as opposed to being charged with brokering commissions.

Yet the directive could provide some businesses with opportunities. Mifid I first introduced the multilateral trading facility (MTF) – a platform where multiple third parties can buy and sell interests in financial instruments – and led to trading venues challenging the dominance of established exchanges. Hogan Lovells financial institutions partner Michael Thomas said that there was a huge proliferation of trading venues that substantially took business away from...