Tuesday, September 25, 2018 Stamford, CT USA — It’s still early days of the MiFID II era, but so far the biggest winners from the industry-changing “unbundling” regulations have been global bulge-bracket dealers.

Greenwich Associates today announced its 2018 Leaders in European Equities. As always, that list is dominated by big global dealers. But this year, following the January 2018 implementation of MiFID II, the bulge bracket has widened its lead over smaller competitors. 

“Global bulge-bracket brokers have clearly increased relative share and impact since MiFID II went live,” says Greenwich Associates Managing Director Jay Bennett. “This reflects their ability to invest in the necessary technology to offer both high-touch and low-touch execution service capabilities and global liquidity for the larger fund management complexes.” 

In European Equity Trading, the 2018 Greenwich Share Leaders are Bank of America Merrill Lynch and UBS, which together lead the market in trading share, followed by J.P. Morgan, Credit Suisse and Morgan Stanley. The 2018 Greenwich Quality Leaders in European Equity Trading & Execution Service Quality are Bank of America Merrill Lynch, Credit Suisse, J.P. Morgan, and UBS. 

With research/advisory services now largely paid for by buy-side clients, investors have narrowed their broker lists. The 2018 Greenwich Share Leaders in European Equity Research/Advisory are Morgan Stanley, J.P. Morgan, UBS, Bank of America Merrill Lynch, and Exane BNP Paribas. “Clients have typically concentrated their vote and spend with selected bulge-bracket and more regional providers,” according to Greenwich Associates consultant Satnam Sohal.

The 2018 Greenwich Quality Leaders in European Equity Research Product and Analyst Service Quality are Exane BNP Paribas, J.P. Morgan and Morgan Stanley.

Electronic Execution

It’s not only global bulge bracket brokers that have benefitted from MiFID II. “Execution-only” platforms have also gained market share this year. ITG is among the 2018 Greenwich Share Leaders in European Equity Algorithmic Trading, and both ITG and Liquidnet place among the 2018 Greenwich Quality Leaders in European Equity Electronic Trading. 

Click here for the Greenwich Report and list of 2018 Greenwich Leaders in European Equities