Banks May Lose Up to 15% of Europe Stock Trading Revenue Under MiFID
- Total corporate, investment bank revenue to fall 2.6%
- MiFID rules take effect Jan. 3, many firms not prepared
How MiFID II Is Going to Change Banking
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The world’s biggest banks may lose as much as 15 percent of their revenue from trading stocks in Europe as a result of new rules overhauling the industry that take effect next month, according to research firm Coalition Development Ltd.
Total revenue from corporate and investment banking across Europe, the Middle East and Africa is forecast to slide 2.6 percent as a result of the revised Markets in Financial Instruments Directive, or MiFID II, including the slump in cash equities, the research shows. Fixed-income trading and banking, which account for the vast majority of revenue, will fall 4.2 percent and 1.7 percent respectively under the rules, Coalition said.