The European operations of investment banks are expected to lose $4.4 billion from new regulatory reforms, known as MiFID II.
Traders will shoulder the bulk of the losses, with equity and debt markets teams expected to lose a combined $2.5 billion.
Global investment banks are going to see their revenues in Europe chopped by $4.4 billion from the new financial reforms that start to go live in January, according to a new report. Trading desks will bear the brunt of the losses.
Banks generate about $170 billion in revenues from corporate and investment banking (CIB) operations in Europe, the Middle East, and Africa region — EMEA — but the broad and complex European regulatory reforms known as MiFID II are expected to trim that figure by 2.6%, according to Coalition, an industry analytics and consulting firm.
MiFID II is intended to heighten transparency and root out conflicts of interest, and the regulations will impact just about every global financial services firm.
Banks, given their breadth and array of services, face some of the most significant changes.
Coalition analyzed 25 products and lines of CIB business and found that trading operations would be hardest hit once MiFID II is fully implemented over the next …read more
Source:: Businessinsider – Finance