Briefings

Week InReview: May 19, 2017

Alpha capture (investors directly pay for trade ideas they use and which perform well, rather than pay for them indirectly with trading commissions) will soon be outlawed by MiFID II rules:

One winner from [the 'alpha capture'] system: Smaller brokerages that lack the established relationships of investment firm Goliaths can now win clients by showing that their advice is superior. That worked for Conway, a quantitative analyst who says he has received payments for his trading ideas posted on TIM Group. 'Nobody had considered the performance angle before, it used to be only about price' of trading execution, said Conway. 'Now, there's an audited record of ideas. It's a very clinical system, but it's proven to work.'

Read entire Week InReview: May 19, 2017

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