SEC Mulls Reprieve Over MiFID II

The video discusses the conflict between MiFID II and SEC rules, focusing on the unbundling of research costs from trade execution costs. It highlights the challenges faced by US firms due to SEC regulations and the introduction of no-action letters to facilitate compliance. The video also examines the varying costs of research services and the potential impact on the buy side, with concerns about regulatory compliance and market competition.

What is one of the main challenges US firms face due to MiFID II regulations?

• Increased competition from European firms

• The need to register as investment managers

• Higher taxes on financial transactions

• Limited access to European markets

What is the purpose of MiFID II regulations?

• To limit the influence of US firms in Europe

• To reduce the number of financial transactions

• To provide transparency and competition

• To increase market volatility

How has the SEC addressed the conflict with MiFID II regulations?

• By imposing fines on non-compliant firms

• By providing no-action letters to firms

• By aligning US rules with European standards

• By banning unbundling of research costs

What is a potential consequence of unbundling research costs?

• Increased transparency and competition

• Reduced regulatory oversight

• A race to the bottom in research pricing

• Higher profits for investment banks

What is a concern for the buy side regarding unbundled research costs?

• The availability of research analysts

• The impact on market liquidity

• The quality of research provided

• Whether to absorb the costs or pass them to clients