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Nasdaq Reveals 50% Spike in Paid Research Triggered by MiFID II

  • Nordic practice represents conflict of interest, Nasdaq warns
  • Revised MiFID was meant to improve transparency for investors
Trading Inside Frankfurt Stock Exchange As MiFID II Market Regulation Launched
Photographer: Alex Kraus/Bloomberg

When it comes to equity research, good intentions have gone awry.

Nordic companies are increasingly bankrolling analysts now that banks are barred from folding research costs into trading fees. Almost half, or about 450, of the 1,000 companies that are listed on Nasdaq Inc.’s main market and alternative First North market in Sweden, Denmark and Finland are now covered by such pay-to-play analysis, according to Nasdaq. That’s up 50% over the past two years.