​The future has been turned into a Covid-imbued haze, but in the institutional stockbroking-research sector, the pandemic is already highlighting two strong future trends. At the same time, it is worsening structural problems that were introduced by the second iteration of the Markets in Financial Instruments Directive (MiFID 2).

The first trend is working from home – a transition that was relatively seamless for the industry, while also proving to be advantageous in numerous aspects. The second trend is the rising prominence in investment decisions of the “social” aspect of ESG: environment, social and governance. Finally, the Covid-19 crisis is expected to make the environment even more difficult for smaller brokers, accelerating the consolidation brought about by MiFID 2, which separates research and execution services...

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