MiFID II will force greater clarity in how research is being valued and paid for. To the extent this increases the sell side's ability to construct a research "P&L," potentially down to the individual account level, it will simultaneously bring greater clarity to the profitability of trading relationships. In a more unbundled world, it will become more difficult for one side to subsidize the other.
MethodologyBetween March and May 2015, Greenwich Associates interviewed 200 European equity portfolio managers and 185 European equity traders regarding their overall commission expenditures, allocations for research/advisory services encompassing research product, analyst service, sales service, and corporate access), use of execution services, and relationships with sell-side brokers.