Exotix separates research, broking ops pre-MiFID
15/06/2017 09:00
LONDON, June 15 (Reuters) - Emerging markets-focused
financial services firm Exotix said on Thursday it is
"unbundling" its research and data services from the broking and
investment banking divisions ahead of the upcoming regulatory
overhaul of the securities trading industry.
Exotix, part-owned by Michael Spencer, founder of
interdealer broker ICAP TCAPI.L , said it is launching a
standalone research, analytics and data division (RAD) to help
European clients prepare for MiFID II - Markets in Financial
Instruments Directive - regulation that takes effect in January.
One aspect of the new regulation is that investment banks
must charge fund managers an explicit fee for research rather
than bundling the cost into trading commissions charged to
clients, as is the case at present.
That is forcing many asset managers with European operations
to "unbundle" or separate trading costs from research costs when
they pay brokers.
"Positioning research, analytics and data as a standalone
unit marks an important step in helping European clients prepare
for regulatory changes to the way in which research is consumed
under the impending MiFID II rules," Exotix said in a statement.
MiFID could benefit some independent research houses if big
investment banks are no longer able to employ scores of analysts
to produce research urn:newsml:reuters.com:*:nL4N1FZ47A.
Exotix said it would show how research could "also be used
as an enhanced separate service".
Now rebranded as Exotix Capital, the company's RAD service,
covering over 160 companies and government entities, is to be
offered on a research portal that will initially be delivered on
its own website.
But analyst reports could later also be made available on
third-party platforms, it added.
The company has recently made a string of hires aimed at
boosting its equity and fixed income operations in Asia, Africa
and Middle East. It said the RAD division would be headed by
Paul Domjan, formerly the chief executive of financial analysis
firm 4CAST-RGE (Roubini Global Economics).
(Reporting by Sujata Rao Editing by Jeremy Gaunt.)
((sujata.rao@thomsonreuters.com; 44 20 7542 6176 ; Reuters
Messaging: sujata.rao.thomsonreuters.com@thomsonreuters.net))
Keywords: RESEARCH MIFID/EXOTIX