Moody’s: MiFID II will prompt greater use of ETFs in securities lending

The introduction of the second instalment of the European Union’s Markets in Financial Instruments Directive will bring widespread change to how asset management products are designed and sold, said Marina Cremonese, a Vice President and Senior Analyst at Moody’s.

She noted that: “fee competition in the asset management industry will intensify due to the increased cost transparency and easier product comparability. The added cost transparency and ban on commissions for independent financial advisors will encourage greater use of low cost passive funds among retail clients, supporting the growth of ETFs.”

Cremonese added that: “as ETF trades will have to be reported, there will be more information about ETF trading volumes and liquidity. The resulting improvement in transparency and liquidity will likely prompt a larger usage of ETFs for securities lending and collateral purposes from institutional investors.”

Related Posts

Previous Post
Agenda now online for Finadium Investors in Securities Lending Conference New York, April 11-12 2018
Next Post
Artificial Intelligence is one way of several to bridge the manual to STP gap (Premium)

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account