Credit Agricole to Slash Cost of MiFID Research to $24,000By and
French bank rethinks its offer as pricing war intensifies
Most expensive package was 120,000 euros for credit only
Credit Agricole SA became the latest European bank to reduce the amount asset managers need to pay for its investment research next year.
The French bank is now offering a single service encompassing all its research, conferences and some analyst access for 20,000 euros ($24,000) a year, according to a pricing document dated Sept. 18 on its website. Clients who want to have priority to analysts may be charged more. The bank is no longer making a distinction between basic and premium research with the package that includes macroeconomics, credit, emerging markets, foreign exchange and interest rates.
Earlier the firm’s most expensive package would have been as much as 120,000 euros just for credit research, according to a pricing document in June.
“Twenty thousand euros is the floor,” said the document, which was signed by Jean-Francois Paren, head of global markets research at the bank that’s based in the Paris suburb of Montrouge. “Enriched interactions with our analysts” will cost more, it said.
Competition is heating up between investment banks, which are being forced to create a market for research that is currently given out for free. From Jan. 3 the European Union’s MiFID II regulations aim to tackle conflicts of interest by requiring asset managers and hedge funds to be charged separately from trading fees. Deutsche Bank AG has halved the price of its fixed-income and macro research while Credit Suisse Group AG is considering ways to keep it free, people familiar with the matter have said.
“We’ve looked at pricing on the market and are trying to offer closer to that,” Paren said by telephone. “We’ve chosen as plain and simple a model as possible. We didn’t consider making it free. On our reading of the regulations, it’s not an option."