Tue, Oct 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Where MIFID II is wrong on transaction fees with detrimental consequences for investors

Tuesday, November 14, 2017

Komfie Manalo, Opalesque Asia:

Harold de Boer, Managing Director, Member of Management Committee and Member of Board of Directors at Transtrend, believes that the fixation on costs has gone too far, particularly the European Union's imposed MiFID II which is set for implementation on January 3, 2018.

De Boer told participants of the latest Opalesque 2017 Netherlands Roundtable that while he believes that the transparency required by MiFID II is a good idea for market players, it will have detrimental consequences for investors because it has the potential to disrupt the markets.

He said, "In MiFID II, investment managers are obligated to report on transaction costs. These costs include implementation costs, in principle to be calculated in a manner that has been precisely defined in another piece of EU regulation (PRIIPs). Such transparency is in itself a good idea, one could argue. Until you realize what effect this specific calculation will have when markets are disrupted."

"Take a situation like the flash crash in May 2010, with stocks trading way below their fair value. Some investment managers decided to sell in such an already heavily undervalued market, others decided to buy. One might hope that regulation stimulates the latter. But this regulation does exactly the opposite. Investment managers who decide to buy......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. BB&T Securities to bolster alternative investment offerings with CAIS platform[more]

    Laxman Pai, Opalesque Asia: The financial services firm BB&T Securities has selects the financial product marketplace CAIS to expand alternative investment access for advisors. A press release from the wholly owned subsidiary of BB&T Corporation said that with CAIS, it will gain access to pr

  2. Europe: Europeans up interest in unconstrained bond strategies, Generali steps up efforts to build multi-boutique business, Nordea bank in new Russia funds complaint, FCA proposes climate risk reporting duty for asset managers[more]

    Europeans up interest in unconstrained bond strategies Unconstrained bond assets are on the rise. Across both retail and institutional accounts, assets under management in these strategies rose from $153.2 billion in Q2 2013 to $289.7 billion in Q2 2018, for a five-year compound annual

  3. Robert Citrone's discovery cashes in on bearish bets[more]

    From Institutional Investor: The macro hedge fund is riding strong gains since mid-year thanks to savvy wagers against Italian fixed income and other instruments. Macro hedge funds are finally getting a reprieve, between the bond market selloff and overall financial market volatility - two even

  4. Hedge funds at the 'core' of stock slump may be done offloading, Why hedge funds will stick with ever-risky short volatility trades[more]

    Hedge funds at the 'core' of stock slump may be done offloading From Bloomberg: One quantum of solace for bruised stock bulls: Some of the usual suspects behind last week's rout may be done frightening markets. Equity long-short hedge funds are among the worst-performing categori

  5. Investing: Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks, U.S. fund investors pull most cash from bonds since February -ICI[more]

    Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks From CNBC: Billionaire hedge fund investor Leon Cooperman confirmed to CNBC on Wednesday that he has personal money in the cannabis industry, noting investments in a few young marijuana companie