Thomson Reuters Addresses MiFID II Unbundling

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Thomson Reuters Addresses MiFID II Unbundling

August 09, 2017

MiFID II regulations go into effect in January. Are you ready?

If not, Thomson Reuters may be able to help.

The company recently updated its financial desktop Eikon to address MiFID II research unbundling requirements.

“The new Thomson Reuters MiFID II Entitlements Solution features upgraded entitlement granularity to meet brokers’ flexible segmentation requirements,” the company explains. “It provides seamless entitlement request and response functionality for the sell-side and buy-side through our Research Management Console, and a comprehensive Research Entitlement API for contributor CRM integration. Furthermore, to support buy-side clients’ regulatory reporting requirements, Thomson Reuters has also enhanced its readership reporting systems with better usage tracking.”

MiFID II, which stands for the Markets in Financial Instruments Directive II effort, is a new policy from the U.K.’s Financial Conduct Authority. It expands upon the original MiFID, which the U.K. put in place in November of 2007. And it will impact any person or organization providing or offering advice on bonds, commodities, derivatives, shares, and/or units in collective investment schemes. It also includes the locations at which the conversations take place. As a result, the number of people included in this regulation could go up tenfold, to 300,000, in the U.K., according to an Information Age article in March.

These new rules will imact how research is paid for and managed by the institution, Thomson Reuters explains. Most specifically, they eliminate free research or research paid based on specific trading or investing decisions. 

“To help clients navigate these research unbundling challenges, Thomson Reuters Eikon research solutions provide users the ability to objectively assess sell-side analyst quality, manage entitlements to external research, gain insights quicker through improved research discovery, and effectively evaluate a firm’s research team,” the company explained.    

Mahesh Narayan, head of portfolio management and research at Thomson Reuters, said the unbundling requirements are a game-changer for the research segment of the financial services industry. “Our established research capabilities make Thomson Reuters well-positioned to provide unbiased and powerful solutions that help clients navigate and comply with MiFID II research unbundling requirements,” he added. “In addition to developing our own products, as an open platform, we are committed to partnering with third-parties that adds further value to our Eikon users.” 

Edited by Maurice Nagle

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