Equities
for the Swedish model of complete unbundling ; one of the appealing factors of this approach is that without CSAs there is no need to set up any separate RPA – rather some firms are planning to simply pay for research from their own budget . Some firms are clearly going execution-only ; however , others think that MiFID II doesn ’ t go far enough , and one trader in the London ATF Equities in H2 objected to having to make payments for research at all . K & KGC also published a 2016 commission management report based on input from Asia , Europe and U . S . A . in November 2016 . This report explored how commission rates should be approached on a global basis , and whether cents per share is a more cost effective model than basis points .
In addition to all of the above , the buy side continues to be concerned about broker selection , scoring criteria and review , regulatory demands in Europe for more detailed best execution policies ( which many firms fear may compromise their ability to be flexible ) and to what extent broker lists should be cut , given cost pressures on the industry . Also in Europe , the buy side is debating whether it should outsource trade and transaction reporting , or place it in-house . Some firms are trying to delegate all trade reporting .
In the US , there is some scepticism about the effectiveness of the SEC ’ s tick pilot which aims to boost small and mid-cap stocks by changing tick size increments . There is also a feeling that there are too many venues ; there is some support for IEX , which was created to appeal to long-only institutional investors . Across all regions globally , there was also concern that the cumulative effect of global regulation could disadvantage smaller buy side houses and hand an unfair advantage to larger players that have the resources and scale to cope more easily .
December 2016 www . buysideintel . com
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