These people are so disconnected from reality, they probably think charging six figs for their subpar, shit, research is a bargain.
Starting early 2018, the EU will ban brokerages from bundling research with commissions, citing conflicts of internet, which will force banks to find a way to monetize of even justify the existence of their expensive research departments. They are exactly like newspapers, only with highly profitable trading and fee based divisions that make it bearable. But with new rules taking place, Nomura belives they have to charge 120,000 euros per annum to clients to access their reports.
What!?
That’s what the Japanese bank quoted in April for an all-inclusive “premium offering,” according to a pricing document seen by Bloomberg News. While Nomura said pricing is still fluid and it’s being flexible in talks with clients, the guidance may indicate how banks and their clients will settle on how to value something they’ve rarely charged for.
The European Union’s MiFID II regulations, which will be enforced from Jan. 3, aim to tackle conflicts of interest by requiring asset managers to separate the trading commissions they pay from investment-research fees. Banks have worked to find a model to sell their research at a price that won’t drive away clients, while also not being so low that regulators accuse them of gaming the system.
Cheaper options will include a la carte currency and economic reports — for the bargain price of 60k euros. For EM, fixed income and credit, prices will start at 80k euros.
Who’s ready to sign up?
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Sounds to me like there will be some semi-insider, non-public information passed around behind the scenes for those who sign up. Bullshit in reports, nuggets in secured and encrypted communication.
We pay numerous shops we don’t trade with $100K per annum and most are niche so not as broad coverage as Nomura. We get analyst access so it’s not just research but yeah, the shit is expensive. The tier one guys are probably going to be more in the $500k to $1M range if I had to guess.
Conflict of internet…you mean Twitter?
I don’t know much but I know this: it may or may not have been a typo, but “Conflict of Internet” is now in my lexicon and will be used extensively.
Covfefe