JP Morgan Asset Management, T. Rowe Price, Aberdeen Asset
Management and Allianz Global Investors are among several buy-side firms to pay for the cost of external research under MiFID II.
In a statement, JP Morgan explained a ‘substantial’ amount of
resources are already committed to the internal research department at the asset manager and there will be no changes to the
internal teams due to the policy change.
“We also utilise external analyst research where we believe it
can add value to client portfolios,” JP Morgan added.
At T. Rowe Price, Rob Sharps, co-head of global equity and
Group chief investment officer, wrote in a statement it decided
to absorb the costs as the buy-side firm is ‘well-known’ for its
internal global research platform.
“In recent years, we have continued to invest in our alpha-gen-erating capabilities around the globe by adding analysts focused
on fundamental research, quantitative research, corporate governance, socially responsible investing, and corporate access.
“The supplemental third-party research we receive complements our own proprietary research,” he said.
Sharps added the decision to absorb the costs of research was
made in clients’ best interests, while preserving its investment
process and access to ‘important’ third-party research.
The majority of asset managers currently receive research
paid for through execution commissions or commission sharing
agreements, rather than paying for it directly. This method is not
allowed under MiFID II and unbundling could potentially see
huge costs transferred to the buy-side.
Deutsche Asset Management recently created its own internal research division in a bid to control its research costs come
January 2018. Deutsche’s research unit will help fund managers
identify investment opportunities and provide clients with regular analysis on macro-economic developments.
In June, Barclays became one of the first investment banks to
put a price on its research, through a tired structure costing anywhere between £ 30,000 and £350,000.
Unbundling will ban the buy-side from receiving
research paid for through execution commis-
Major buy-side institutions opt
to absorb research costs under
Citi taps Deutsche for global
electronic and algo trading head
Citi hired a new global head of
electronic and algorithmic trading
and head of futures, clearing and
collateral for EMEA from Deut-
sche Bank. Sabrina Wilson held
similar positions during her time at
Deutsche Bank and she has more
than 20 years’ experience in futures
and options, clearing, market
structure and electronic trading.
Barclays hires KCG’s European electronic trading head
In July, Barclays hired Graham
Wayne, KCG Europe’s former head
of electronic trading, in a new
product role. Wayne’s appointment
is a significant boost for the British
bank, after it lost its former global
head of electronic equities, Joe Me-
cane, to Citadel Securities in June.
Candriam bolsters multi-asset
trading desk with new hire
Candriam Investors Group hired a
new trader covering cash equity, FX
and derivatives as the firm looks
to foster new talent in European
buy-side trading. Vincent Minichet-
ti joins Candriam from Edmond
de Rothschild Asset Management
in Paris where he traded futures,
options and credit default swaps.