The impact of the new market regulations across Europe is tantamount to suddenly telling drivers that they have to move across the road. The purpose of all this exercise is to impose unprecedented transparency and to minimize conflicts of interest. Is this, however? Let's look at who will win and who will lose after the new rules come into force.
Winners:
- Pension funds
- Hedge Funds
- Big Money Managers like Black Rock and Vanguard Group
- Exchange traded funds
- Large investment banks
- The field of financial market research
- High Frequency Traders
Losers:
- Small portfolio managers and individual traders
- Stock exchanges - mainly Euronext NV and Deutsche Boerse AG
- Small and medium-sized enterprises
- Boutique Investment Banks
Of the above mentioned market participants and the groups in which they are located, it becomes clear that the world of finance will become more difficult for those who manage less money. However, MiFID II will be operational in early 2018, with no further changes being excluded.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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