"Business models will change as a result of MiFID II. Unbundling of research will be huge, with some US$3 billion of payments for research – 75% of the total annually" - Ollie Cadman
In "MIFID II Will Change the Market in Six Distinct Ways" Mr Cadman presents an informed and insightful view of the changes in the capital markets as a result of MiFID II which will go into effect in 2018. This article also points out a unique new perspective, that "as spend on research and execution becomes more granular, overall spend is expected to reduce; some dealers have already started shutting down their research departments".
To address these changes in payment for research Global sell-side firms and investment banks have begun to enhance their research capabilities through partnerships with independent research firms capable of using AI and machine learning to transform big data into actionable research at lower overall costs. At RelateTheNews our artificial intelligence (domain specific NLP) applied to news and other forms of textual big data has proven capability with global quant hedge funds. A proven capability of actionable, insightful research from our proprietary analysis engine delivered via our data as a service or platform as a service which can aid global sell side firms with enriching their research capabilities cost effectively as the continued changes of research unbundling come into full effect.