Sell-side institutions could increase fees to buy-side traders as the costs of MiFID II compliance rise, forcing the sell-side to "shoulder a great deal of business," according to a report by financial consultancy GreySpark. The report, which was commissioned in response to an open letter from more than 100 members of Congress, said that if the U.S. government were forced to impose new regulations on over-the-counter derivatives trading, it would be
Sell-side institutions could increase fees to buy-side traders as the costs of MiFID II compliance rise, forcing the sell-side to "shoulder a great deal of business," according to a report by financial consultancy GreySpark. The company suggested that both buy-side firms and sell-side banks must consider new strategies for implementing system and process efficiencies to offset the regulatory costs.