BlueMatrix Takes on MiFID II and Buyside Research Valuation

MiFID II, which goes into effect in the EU January 3, 2018, requires research fees be unbundled from execution fees. European research providers must implement a systematic and transparent pricing structure for all services provided to European asset managers, and asset managers must fund research purchases either through an established Research Payment Account (RPA), or through their own P&L.

In determining a transparent pricing structure for research, a MiFID II requirement, the importance of quantitative readership metrics will increase.

Sandy Bragg, CEO at Integrity Research Associates, relates that "Asset managers planning to be fully compliant with the UK Financial Conduct Authority's more vigorous application of MiFID II rules are planning to enhance existing broker voting processes with 1) a priori contracts with research providers, 2) usage metrics, and 3) implementation of entitlement controls to ensure that they are not receiving 'free' research."

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Integrity Research Associates, LLC is an advisory firm founded in 2003 to analyze the global investment research industry. ResearchWatch is the only dedicated media focused solely on the investment research industry.

BlueMatrix Research Manager delivers a single platform to access, manage and collaborate on research across multiple distribution channels for both sell-side and buy-side. A research productivity tool, Research Manager gives asset managers immediate access to relevant research and trending topics or investment ideas when they want it. Research Manager's consumption analytics facilitate the MiFID II requirements of allocation of research funds and tracking of costs incurred.