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Markets for Financial Instruments Directive (MiFID II)


In November 2007, the European Union (EU) introduced the Markets for Financial Instruments Directive, also known as MiFID. The purpose of MiFID was to provide a robust regulatory agenda for all EU members to work under that would help protect investors. As MiFID was launched before the 2008 financial crisis, changes had to be made to the legislation which would better strengthen the initial objectives of MiFID and provide further protection for investors.

What is MiFID II?

In a bid to improve the way the financial markets function, create greater transparency within the markets, and better protect investors, the original legislation was revised. The newly revised legislation is known as MiFID II, and it will come into force on 3 January 2018.

One of the most significant features of MiFID II looks at how asset managers pay for research that is used to make investment decisions. Prior to MiFID II being introduced, asset managers would receive research from the financial intermediaries (through brokerage services) they deal with and the true cost of the research would be absorbed within trading transaction commissions paid by the fund managers’ clients. 

Once MiFID II comes into play in early 2018, fund managers will no longer be able to pay for research in the same way, with asset managers either forced to absorb these research costs internally or otherwise disclose the research costs to their investors. Most asset managers have decided to absorb these external research costs while some have chosen to pass the full cost onto investors. Irrespective of the prevailing decision of asset managers to either pass on this additional cost or absorb it as an ongoing cost of doing business, asset managers will now either have to pay financial intermediaries directly, or approach independent consulting companies for research. Whichever approach the fund managers take, they will likely have to validate the cost of the research with their clients.

While larger asset managers should be able to absorb the costs associated with direct fees for research, the more transparent nature of the fee structure should drive a greater cost incentive to deliver value through research. Independent research houses with proven methodologies and strong track-records will be able to fill the gap of a diminished sell side research function and this is where FGE can help.

Why Choose FGE For Your Research Needs?

For over 30 years, FGE has been at the forefront of providing leading independent research, analysis, and data on the oil and gas/LNG markets to a diverse range of clients throughout the world, including large asset managers, hedge funds as well as large sell side institutions. By utilizing FGE’s expertise, clients have been able to strengthen their understanding of the fundamentals of oil and gas markets, make better informed trading and investment decisions, while adjusting their business strategies based on accurate, proven and reliable analysis.

 

Mifid How Can Fge Help

Research & Analysis

Our oil related research and analysis services are proven to benefit clients by strengthening their understanding of the key fundamentals, providing the necessary resources to help them make more accurate business decisions, and to identify paradigm shifts in the oil markets. This is achieved through consistent consultation with our expert oil team, regular reports, analytics, and industry alerts.

  • Short-Term Global Oil

    FGE's Short-Term Global Oil Market Service provides up-to-date fundamental analysis of the key events and data affecting the oil markets, together with consistent forecasting of future trends.



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  • World Oil Market Reports

    The suite of reports incorporates a detailed, internally-consistent database covering crude/NGL output and main oil products supply/demand encompassing: crude/NGL supply, refinery runs and output, products demand, crude/products stocks, and regional/global balances.



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  • Africa Oil

    FGE's specialized regional monthly for both upstream and downstream companies seeking a comprehensive view of Africa's dynamic markets, together with accurate and reliable forecasts of crude and products supply, demand, and balances, with potential trade implications.



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  • Middle East Oil

    FGE's leading monthly report for analysts and executives seeking unique and reliable assessments of the complexities that exist within the Middle East's oil market.



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  • Latin America Oil

    FGE's specialized regional report provides consistently reliable insights and forecasts for downstream companies seeking a comprehensive view of the dynamic Latin American and Caribbean petroleum product markets and likely import trends.



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  • European Oil

    FGE's comprehensive regional report for analysts and executives seeking insight, analysis, and data on Europe's oil market and the position it plays within the global oil marketplace.



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  • FSU Oil

    FGE's specialized FSU monthly report incorporates a detailed, internally-consistent database covering crude/NGL output amd main products supply/demand, with the focus on FSU crude/products exports trends.



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  • East of Suez Oil

    FGE's leading East of Suez oil service provides clients with the very best research and analytics, information, and insights on the Asia Pacific and Middle East oil markets.



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  • China Oil Service

    FGE's China oil service provides clients with a comprehensive understanding of the key aspects of the sector developments, refining business, and oil markets in China.



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  • Iran Oil and Gas

    Our Iran Oil and Gas Service builds upon decades of research, consulting, and professional networking to provide our clients with a detailed and comprehensive analysis of Iran's oil and gas industry.



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  • East of Suez Gas Service

    FGE's comprehensive service for clients looking for valuable insights, analysis, strategic advice, and analytics on the global gas/LNG market dynamics, with a particular focus on the East of Suez region.



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  • Spot/Short-Term LNG

    FGE's Spot/Short-Term LNG Report, an add-on to the East of Suez Gas Service, presents our fundamentals-based analysis of the spot and short-term LNG market, enhancing the client's abilities to capture opportunities in this rapidly evolving market segment.



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  • China Gas

    FGE's China Gas Service provides clients with a comprehensive understanding of the key aspects of the gas sector developments and LNG business in China.



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  • Iran Oil and Gas

    Our Iran Oil and Gas Service builds upon decades of research, consulting, and professional networking to provide our clients with a detailed and comprehensive analysis of Iran's oil and gas industry.



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  • Middle East and North Africa Gas

    The Middle East & North Africa Gas Service allows clients to develop a deep understanding of the key developments in the gas/LNG markets in the region.



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Further Information

If you require additional information on this or any FGE service, including requesting a trial, or you would like to discuss ways in which FGE can assist you further, please contact a member of our sales team:


Mr. Robert Beckmann - London

Head of Business Development
Tel: +44 (0) 20 7726 9570

Email Robert

Mr. Fedor Moisseyev - London

Business Development Manager
Tel: +44 (0) 20 7726 9570

Email Fedor

Mr. Farhan Sulaiman - Singapore

Business Development Manager
Tel: +65 6222 0045

Email Farhan

Ms. Iren Naseri - Dubai, UAE

Business Development Manager
Tel: +971 4 457 4270

Email Iren

Mr. TJ Braziel - Houston, TX

Business Development Manager
Tel: +1 (281) 819 1983

Email TJ

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