MiFID2 IR Survey - Exane BNP Paribas
Mifid2 is transforming the European equities industry. While most commentary has understandably focused on the implications for the buy-side and the sell-side, the knock-on effects for corporates are less well understood. Thanks to the responses of over 300 European (IR) professionals, this survey of corporate attitudes attempts to paint a clearer picture of the landscape post-Mifid2.
“Mifid2 is dominating the thoughts of financial professionals across Europe and beyond. Dramatic changes to the way the industry operates are just around the corner. The old model – whereby every broker spoke to every investor and research was (almost) freely available – is coming to an end. In its place, we expect to see a more exclusive model with time, relationships and flows increasingly concentrated among a smaller number of counterparts.
The consequences are so wide-reaching that we expect corporate issuers to see the effects immediately. IR professionals clearly expect change – even if they’re not sure exactly what form it will take – with the vast majority expecting their departments to be impacted by this regulation.
In this report, we look in more depth at some of the biggest issues, including the cost of running IR functions, the quality and quantity of research coverage, corporates’ access to content and ability to redistribute it, the impact on consensus and changes to corporate access practices. At Exane BNP Paribas, we need to change the way we work to create a clearer link between the value we provide to corporates and the management time they allocate to us.”
Head of Equities,
Exane BNP Paribas
About Exane BNP Paribas
Exane BNP Paribas is a leading European equities business. We offer a high quality execution platform with full electronic trading capability. Our research product is renowned for its depth and quality and is reinforced by experienced, top-ranked Sales & Specialist Sales teams as well as a high quality corporate access service.
High Quality Research
We have invested consistently over recent cycles to build a top research franchise which was ranked Number 1 in Europe in the most recent Extel Survey. Overall, we now rank in first place in 15 sectors (out of 30) while we have a Top 3 position in 25 sectors. We believe this success is due to our focus on innovative, high quality research and data. We will continue to invest to strengthen our research product and provide a better service to clients.
Strong Distribution & Access
We believe that high quality content deserves proper distribution. That’s why we have a well-resourced and highlyexperienced 45-person Sales team with a local presence in most major markets and a Specialist Sales desk covering the majority of equity sectors. Exane BNP Paribas was also ranked 1st for Equity Sales in the 2017 Extel Survey and in the most recent Greenwich Associates awards. Connecting investors with corporates is a critical role for us. We offer a full suite of products as part of our new Insight service offering. Last year, we hosted 20 industry conferences, 100 expert access events and organised over 15,000 investor meetings.
We believe that execution quality matters more than ever. We offer a full suite of Trading products across High Touch, Electronic Trading and Program Trading. Our experienced team and cutting-edge technology make us key partners for Europe’s major equity investors. We have built a strong Electronic Trading platform, where we continue to add new counterparts and where volumes are rising significantly. Exane BNP Paribas was a winner at The Trade’s Algorithmic Trading Awards. We won the award for Anonymity – the number one priority for electronic trading clients. We were also nominated for Execution Consistency, Customisation and in the overall category for large clients
(AUM >$50bn), where we received the highest score for Customer Service.
Published 7 December, 2017