Wall Street Said Poised for SEC MiFID Reprieve

The transcript discusses the challenges US firms face in complying with MiFID, which conflicts with US SEC rules. The SEC is considering allowing violations of US rules to comply with MiFID. The global impact of MiFID is significant, affecting Wall Street and European investment funds. Goldman Sachs and other banks are adjusting their pricing strategies in response. The unbundling of services poses challenges for Wall Street, as investors may prefer separate providers for research and trade execution.

What is one of the main challenges US firms face with MiFID compliance?

• It requires them to violate US SEC rules.

• It forces them to close European branches.

• It increases their tax liabilities.

• It mandates hiring more employees.

What is the SEC's stance on US firms violating its rules to comply with MiFID?

• It will require firms to seek special permission.

• It will ignore the issue entirely.

• It will not punish firms for such violations.

• It will impose heavy fines.

How has MiFID affected the pricing strategies of banks like Goldman Sachs?

• Prices have increased significantly.

• Prices have remained stable.

• Prices have decreased over the year.

• Prices are no longer disclosed.

What is a potential problem for Wall Street as investors seek unbundled services?

• Higher operational costs.

• Loss of revenue from bundled services.

• Decreased market competition.

• Increased regulatory scrutiny.

What might US investors demand as they observe European practices?

• Unbundled services similar to European investors.

• Lower trading fees.

• More investment options.

• Higher interest rates.