The UK’s Financial Conduct Authority drew up MiFID II with two primary concerns: that individual investors were overpaying — albeit indirectly — for research, and that investment advisors were not providing sufficiently robust trade-execution protections. That’s according to Tyler Gellasch, executive director of industry trade group Healthy Markets Association.
U.S. trading and investing firms that don’t transact in European markets aren’t specifically covered by MiFID II need not worry about complying with the regulation on January 3, but over time those that aren’t aligned with its broad intent risk falling behind the curve. “I suspect that those firms are going to catch up and will adopt many of the same best practices as the global firms,” Gellasch said.
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