Buy-side traders' pay and bonuses could fall as asset managers instead target resources on investing in new technology. Research from analysts Greenwich Associates found 2015 trading desk budgets were split 70% on pay and 30% on technology. By January 2018, however, the ratio had changed to 60:40. The authors of the report said the transparency requirements of Mifid II, which came into effect in 2017, had been a factor in the shift. The new regulations require a lot of technology-related oversight, making investment in such systems more of a priority.
Buy-side traders' pay and bonuses could fall as asset managers instead target resources on investing in new technology. Research from analysts Greenwich Associates found 2015 trading desk budgets were split 70% on pay and 30% on technology. By 2017, however, the ratio had changed to 60:40. The authors of the report said the transparency requirements of Mifid II, which came into effect in January 2018, had been a factor in the shift. The new regulations require a lot of technology-related oversight, making investment in such systems more of a priority.