Banks in Scandinavia are preparing to write equity research commissioned and paid for by listed companies, as they look for ways to recoup revenue losses because of MiFID II.
Alexander Opstad, head of equities at DNB Markets, said the revision of Europe’s Markets in Financial Instruments Directive poses “an existential threat” that’s forcing banks to reconsider how they operate. They now have to itemize research costs, and that transparency is leading customers to demand lower prices.