SEC Blunts Impact of MiFID Threat to Wall Street

The video discusses the SEC's decision to allow Wall Street brokerages to accept research payments without registering as investment advisers, aligning with new European rules. This decision provides a temporary reprieve for US firms, potentially giving them a competitive edge over European counterparts. The SEC plans to revisit the decision in 2.5 years, opening it for public comment. Meanwhile, some investors prefer a system where research and trade execution are paid separately, as in Europe. The SEC's current stance allows brokerages to maintain their business models, keeping research tied to trade execution.

What is the main reason Wall Street brokerages are relieved by the SEC's recent decision?

• They can avoid registering as investment advisers.

• They are allowed to increase their fees.

• They can expand their operations to Europe.

• They are exempt from paying taxes.

How might US firms gain a competitive edge over European firms according to the video?

• By increasing their marketing budget.

• By acquiring European companies.

• By not having to pay certain fees temporarily.

• By reducing their workforce.

What do some US pension funds and asset managers prefer regarding research and trade execution payments?

• To increase the cost of trade execution.

• To eliminate research payments entirely.

• To pay separately for each service.

• To bundle them together.

What is the stance of some investor advocates regarding the US system?

• They support increased regulation.

• They want it to remain unchanged.

• They want to eliminate all fees.

• They prefer a system similar to Europe's.

What is the SEC's current position on changing the system for Wall Street brokerages?

• They are removing all restrictions.

• They are planning immediate changes.

• They are maintaining the current system.

• They are increasing regulations.