SEC Working on a Cure for Wall Street's MiFID Migraine

The transcript discusses the challenges faced by Wall Street banks due to new European regulations that prevent them from bundling free research with other services. This could force them to register as asset managers, leading to increased costs and legal risks. The banks have been lobbying the SEC for regulatory adjustments to avoid these consequences. The SEC, under new leadership, is working to address these concerns before the European rules take effect. Lobbyists and trade groups have been influential in this process, advocating for a solution that allows banks to continue their operations without major disruptions.

What is the main concern for Wall Street banks regarding the new European regulations?

• They will lose their European clients.

• They will face increased competition from European banks.

• They will have to register as asset managers in the US.

• They will have to close their US operations.

Why are Wall Street banks pushing the SEC to modify the rules?

• To reduce their operational costs in the US.

• To avoid registering as asset managers in the US.

• To increase their market share in Europe.

• To gain a competitive edge over European banks.

What is the role of lobbyists in the context of the new regulations?

• They are helping banks comply with the regulations.

• They are opposing the new regulations.

• They are advocating for changes to the regulations.

• They are negotiating with European regulators.

Who was appointed as the SEC leader in May, and why is this significant?

• Jay Clayton, because he accelerated the regulatory response.

• Janet Yellen, because she introduced new regulations.

• Jerome Powell, because he reduced regulatory burdens.

• Gary Gensler, because he focused on financial stability.

What is the hope of the industry regarding the SEC's actions?

• That they will receive relief from the new regulations.

• That the regulations will be enforced strictly.

• That the regulations will be applied only in Europe.

• That the regulations will be postponed indefinitely.