MIFID II SPARKS ELECTRONIC TRADING ACTIVITY – European Investment banks that have invested a lot into their stock trading divisions are still going to lose ground on their US rivals. Analysts at Morgan Stanley wrote in a report this month; European banks “appear to be losing share, and we will be watching this closely for less scaled players, particularly Deutsche Bank, Barclays, BNP [Paribas], HSBC.” Under MiFID II one of the biggest changes is the requirement that banks must charge separately for investment research, instead of adding it with trading commissions. Most of the larger Global Asset Managers are now covering the cost themselves, which is resulting in the slashing of their research budgets. The larger banks that are offering faster trading platforms, sophisticated algorithm and bigger research teams do in fact have an edge under MiFID II. Morgan Stanley’s analysts made a note in their report that there have been increases in the amount of electronic trading activity in Europe, the Middle East and Africa. #SpartanInternational