Tudor, Brevan Howard Said To Ditch MiFID II Licenses In Favor Of AIFMD

Aug 15 2017 | 12:18am ET

The U.K. affiliate of alternative investment manager Tudor Investment Corp. and London-based Brevan Howard Asset Management have reportedly dropped licenses under the EU’s revamped Markets in Financial Instruments Directive (MiFID II) and have opted for registration under the less onerous Alternative Investment Managers Directive.

MiFID II is scheduled to go into effect in January 2018 and imposes significant new requirements, regulations and restrictions on investment managers, brokers, buy-side funds and research providers. The new rules are aimed at improving transparency and accountability within the European investment industry.

Research bundling and trade reporting are two areas of greatest impact, as brokerage houses must now account for research separately from commissions and assign specific prices to what has previously been an included service. For large buyside firms like Tudor and Brevan Howard, however, the changes to trade reporting carries even greater impact, as the level of detail required to show such things as full price transparency and best-price execution are proving to be very expensive and burdensome to implement. 

Neither $8 billion Tudor, run by famed investor Paul Tudor Jones, or $12 billion Brevan Howard commented on the licensing decision, according to a Bloomberg article on Monday. 

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