I personally do not work in research, but I heard that the MiFID II rule will hit the equity research teams in Europe pretty hard.
Is the impact only restricted within EU?
More general question: What’s the future of equity research department in banks? Are they also subject to automation?
It even affects US firms I think, who wants to pay 200-500k for research anyway unless you are one of the big guys. The smaller independent research firms will benefit from this, but generally a declining industry, only 1 % of research reports are actually read. But good place to start if you can’t get to the buyside yet.
By the US firms, you mean the U.S. firms like GS, JP, and MS operating in the Europe region? Or the NYC offices as well?