Wall Street Banks Put a Premium on Customer Research

The video discusses the overhaul in Wall Street research due to new rules requiring investors to pay for research. It examines the cost implications for major banks like JP Morgan, Citigroup, and Goldman Sachs, and the resulting reduction in research headcount since MiFID II. The video also highlights the shift of professionals to hedge funds and investor relations roles. Finally, it evaluates the effectiveness of MiFID II, noting criticism and the debate on whether it has improved trading and research quality.

What is the approximate cost for research access from Morgan Stanley?

• $25,000

• $10,000

• $50,000

• $5,000

By what percentage has the headcount in cash equities research decreased over five years?

• 20%

• 14%

• 25%

• 10%

Which sector have many research professionals moved to due to industry pressure?

• Real Estate

• Hedge Funds

• Retail Banking

• Insurance

What is one criticism mentioned about the new research rules?

• They have increased the number of research calls.

• They are too expensive for small investors.

• They have not improved information quality.

• They are too lenient.

What benefit do some fund managers see in the new research rules?

• More frequent research updates

• Less time spent on calls

• Lower research costs

• Increased analyst hiring