Thomson Reuters
- Stock research firms are getting battered so far in 2018, with revenues declining substantially.
- Part of the blame is new European regulatory reform, which were widely expected to constrict research budgets.
- But JPMorgan Chase deserves some of the blame as well for conducting a multi-front attack on sell-side research industry that “pulled a rug out from underneath” its competitors.
The stock research departments of global banks are suffering this year, with revenues falling in the face of European regulatory reforms that have led their customers to slash research budgets.
In the fallout from the Markets in Financial Instruments Directive II (MiFID II) going live in January, top-tier banks have seen 10% to 30% declines in research revenues in 2018, while second-tier firms are seeing declines of as much as 60%, according to consulting firm Oliver Wyman. See the rest of the story at Business Insider
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