EU MiFID II unbundling rules damaged research and liquidity in London’s main stock market – new study
New research from the University of Bath shows the European Union’s MiFID II financial market reforms inadvertently reduced research activity and adversely affected liquidity in London’s main stock market but that the impact on London’s less regulated Alternative Investment Market was mitigated by its special adviser rules.
The EU’s Markets in Financial Instruments Directive II (MiFID II) from 2018 aimed to improve transparency around research costs, which were previously bundled into brokers’ overall fees to clients. The legislation demanded the fees be ‘unbundled’ to make the hidden costs more explicit ...







