Regulations will unbundle research from liquidity provision starting sometime in 2018 (moving regulatory target, but theme seems clear). Sellside will have lower incentive to pay large research groups; buyside will have to pay explicit fees for research advisory. There is a big opportunity in providing platforms, with macro and market data live, where researchers can interact with capital managers, given that said researchers will likely find themselves bereft of their current distribution networks (bank sales forces) sometime in the next few years.
Equities already have a hybrid form of this where buyside earns "credits" to be allocated at the end of each year to research providers. But fixed income is at least twice as big as equities, is much more opaque because is essentially unlisted (mainly "OTC" = "over the counter" ie only those in the know), and therefore much more susceptible to disruption.
apologies the only "CSA" I know is the Credit Support Annex between counterparties, which seeks to minimize risk on mark to market of derivative contracts. Is this what you are referring to?
Regulations will unbundle research from liquidity provision starting sometime in 2018 (moving regulatory target, but theme seems clear). Sellside will have lower incentive to pay large research groups; buyside will have to pay explicit fees for research advisory. There is a big opportunity in providing platforms, with macro and market data live, where researchers can interact with capital managers, given that said researchers will likely find themselves bereft of their current distribution networks (bank sales forces) sometime in the next few years.
Equities already have a hybrid form of this where buyside earns "credits" to be allocated at the end of each year to research providers. But fixed income is at least twice as big as equities, is much more opaque because is essentially unlisted (mainly "OTC" = "over the counter" ie only those in the know), and therefore much more susceptible to disruption.