Concerns Over MiFID II Rules

The video discusses the regulatory changes in the UK financial services industry, focusing on MiFID and MiFID II. It highlights the challenges of multi-country regulation and the transition of bonds and derivatives to exchanges for better monitoring. The video also covers the new transparency in research pricing, which separates research costs from execution rates, impacting large banks like Citigroup. The changes aim to make trading clearer and more transparent, with a focus on best execution policies.

What is one of the main challenges in implementing new financial regulations across different countries?

• Insufficient funding

• Lack of technology

• Lack of skilled personnel

• Multiple regulators with different agendas

What is the primary goal of moving bonds and derivatives to an exchange or electronic trading platform?

• To enhance monitoring and transparency

• To eliminate the need for brokers

• To reduce the number of transactions

• To increase transaction costs

How will the new proposal affect the pricing of financial research?

• Research costs will be separated from commission rates

• Research will be free for all clients

• Research will be priced based on the number of pages

• Research costs will be bundled with execution rates

What challenge might large banks face with the new research pricing model?

• Banks will have to hire more analysts

• Research will become obsolete

• Banks may struggle to justify the value of their research

• Clients may refuse to pay for any research

How might clients respond to the new transparency in research pricing?

• They will stop using research altogether

• They will demand free research

• They will only pay for the research they actually use

• They will pay more for all research