MIFID II FAVOURS THE UNDERDOG The arrival of new regulation, Mifid II (January 2018), is expected to stimulate ‘axe swinging’ through major parts of research teams in investment banks, according to a report published by McKinsey. A decrease in employment by 30% in Cash Equities and Trading employees has been seen since 2013, at 9 of the top global investment banks, with research employment only suffering a 12% reduction. McKinsey has said the coming transformation of research will force many firms to scale back their broad coverage to a few areas of true expertise, bringing big cuts to research teams in the coming three to four years. In recent years we have seen Asset Managers on the prowl for ‘value for money research’ to help to bolster their performance, which in turn is putting pressure on banks to justify why their research is worth the money. The implementation of MiFID II could see independent houses, boutiques and local champions come into their own against the big financial conglomerates, as they will have niche focuses and greater sector knowledge. #SpartanInternational