# Has the Unbundling of Research under MiFID II Led to a Measurable Improvement in Research Quality? ▴ Question

**Published:** 2025-08-13
**Categories:** Question

---

![Precisely engineered metallic components, including a central pivot, symbolize the market microstructure of an institutional digital asset derivatives platform. This mechanism embodies RFQ protocols facilitating high-fidelity execution, atomic settlement, and optimal price discovery for crypto options](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-market-microstructure-1.jpg)

![Symmetrical precision modules around a central hub represent a Principal-led RFQ protocol for institutional digital asset derivatives. This visualizes high-fidelity execution, price discovery, and block trade aggregation within a robust market microstructure, ensuring atomic settlement and capital efficiency via a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/principal-led-digital-asset-rfq-execution-system-microstructure.jpg)

## Concept

The question of whether the unbundling of research payments under the Markets in Financial Instruments Directive II (MiFID II) has enhanced [research quality](https://prime.greeks.live/question/what-are-the-key-differences-between-paying-for-research-via-pl-versus-a-research-payment-account/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is a query into the fundamental architecture of information flow within capital markets. The regulation, effective since January 2018, dismantled the long-standing model where [sell-side research](https://prime.greeks.live/area/sell-side-research/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) was subsidized by execution commissions. This forced a systemic recalibration, compelling asset managers to explicitly budget for and procure investment analysis as a distinct service. The core intent was to introduce transparency and discipline into a system where the true cost of research was opaque, potentially leading to conflicts of interest and an oversupply of low-value analysis.

From a systems perspective, [MiFID II](https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) acted as a powerful filtering protocol applied to the network of information exchange between research producers (sell-side banks, independent providers) and consumers (buy-side [asset managers](https://prime.greeks.live/question/what-are-the-primary-operational-bottlenecks-that-t1-exposes-for-asset-managers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)). Before its implementation, the bundling of research and execution created a high-volume, low-friction channel. Research was effectively a marketing tool for brokerage services, leading to a proliferation of coverage. The directive fundamentally altered the economics of this relationship.

By mandating direct payment, it imposed a rigorous cost-benefit analysis on every piece of research consumed. Asset managers were now required to justify every dollar spent, shifting their focus from the quantity of research received to its direct contribution to investment performance.

This shift was not merely an accounting change; it was a re-engineering of the incentives that drive the production and consumption of investment knowledge. The previous regime arguably encouraged a model of information saturation, where value was difficult to discern amidst the noise. MiFID II hypothesized that by making research a discrete, priced good, market forces would naturally elevate the quality of what was produced.

Providers would be compelled to differentiate their offerings based on accuracy, depth, and originality, while consumers would become more discerning, allocating capital only to the most impactful inputs. The resulting landscape is one of intended consequences and complex, emergent behaviors that continue to shape the contours of institutional investment.

![A central, metallic, multi-bladed mechanism, symbolizing a core execution engine or RFQ hub, emits luminous teal data streams. These streams traverse through fragmented, transparent structures, representing dynamic market microstructure, high-fidelity price discovery, and liquidity aggregation](https://options.greeks.live/wp-content/uploads/2025/07/principal-grade-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-execution-and-optimal-price-discovery-across-fragmented-market-microstructure.jpg)

![Luminous blue drops on geometric planes depict institutional Digital Asset Derivatives trading. Large spheres represent atomic settlement of block trades and aggregated inquiries, while smaller droplets signify granular market microstructure data](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocols-driving-high-fidelity-execution-and-optimal-liquidity-discovery.jpg)

## Strategy

The strategic realignments following MiFID II’s unbundling mandate unfolded across both the buy-side and the sell-side, fundamentally altering the operational playbooks for research procurement and provision. Asset managers and [research providers](https://prime.greeks.live/question/what-are-the-key-differences-between-paying-for-research-via-pl-versus-a-research-payment-account/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) were forced to develop new frameworks to navigate a market where information now carried an explicit price tag. These adaptations represent a strategic divergence from the prior bundled commission model.

![Central intersecting blue light beams represent high-fidelity execution and atomic settlement. Mechanical elements signify robust market microstructure and order book dynamics](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-visualizing-market-microstructure-for-high-fidelity-alpha-generation-via-prime-os.jpg)

## Buy-Side Adaptation the Architecture of Discernment

For buy-side firms, the primary strategic challenge was to transition from being passive recipients of a flood of research to active, discerning consumers. This necessitated the creation of robust internal systems for budgeting, procurement, and quality assessment.

A central development was the establishment of Research Payment Accounts (RPAs), which serve as dedicated pools of capital for purchasing research, funded either directly by the firm or through a specific charge to clients. The management of these RPAs required a new layer of internal governance. Firms had to construct frameworks to evaluate the value derived from each research provider. This process moved beyond simple relationship management to a quantitative and qualitative assessment of research efficacy.

> The introduction of explicit pricing compelled buy-side firms to develop rigorous, evidence-based frameworks for valuing investment research.

These valuation frameworks typically incorporate several dimensions of analysis:

- **Analyst Interaction Tracking** ▴ Systematically logging calls, meetings, and bespoke inquiries with analysts to attribute value and cost.

- **Recommendation Performance** ▴ Retrospectively analyzing the performance of stock recommendations and earnings forecasts against actual market outcomes.

- **Qualitative Scoring** ▴ Developing scorecards to rate providers on factors like industry expertise, access to management, originality of insights, and responsiveness.

This strategic shift created a more competitive and fragmented marketplace for research. Asset managers began to allocate their budgets with greater precision, favoring high-impact, specialized analysis over generic market commentary. The result was a contraction in the number of research relationships for many firms, but a deepening of the engagement with their chosen top-tier providers.

![A metallic disc, reminiscent of a sophisticated market interface, features two precise pointers radiating from a glowing central hub. This visualizes RFQ protocols driving price discovery within institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## Table of Research Valuation Models

The table below illustrates hypothetical models that asset managers might use to formalize [their research](https://prime.greeks.live/question/what-are-the-key-differences-between-paying-for-research-via-pl-versus-a-research-payment-account/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) valuation process, a direct strategic response to the unbundling mandate.

| Valuation Model | Primary Mechanism | Key Metrics | Strategic Implication |
| --- | --- | --- | --- |
| Broker Vote | Portfolio managers and analysts rank research providers based on perceived value over a set period (e.g. quarterly). | Qualitative scores, weighted by user seniority or AUM. | A straightforward, qualitative approach that captures perceived utility. |
| Commission Sharing Agreement (CSA) Reconciliation | A legacy system adapted for MiFID II, where a portion of execution commissions is notionally allocated to pay for research. | Attributed trading volume, pre-agreed commission rates. | Provides a clear audit trail but retains a link to trading activity. |
| Rate Card Consumption | Providers offer a menu of services with explicit prices (e.g. per report, per analyst call, subscription tiers). | Direct consumption data, unit costs. | Offers maximum transparency and cost control, treating research as a discrete good. |
| Outcome-Based Measurement | Attempts to link research inputs directly to investment performance. | Alpha generated from specific trade ideas, forecast accuracy versus consensus. | The most analytically rigorous approach, aligning research cost directly with investment returns. |

![A sleek, spherical white and blue module featuring a central black aperture and teal lens, representing the core Intelligence Layer for Institutional Trading in Digital Asset Derivatives. It visualizes High-Fidelity Execution within an RFQ protocol, enabling precise Price Discovery and optimizing the Principal's Operational Framework for Crypto Derivatives OS](https://options.greeks.live/wp-content/uploads/2025/07/precision-lens-for-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Sell-Side Restructuring a Focus on Demonstrable Value

The sell-side, particularly large investment banks, faced a symmetric challenge. Their research departments, once operated as cost centers to support the primary revenue stream of trading commissions, had to be reconstituted as viable, standalone business units. This precipitated a fundamental restructuring of their service offerings and pricing models.

The most immediate change was the introduction of tiered pricing structures. Access to top analysts, bespoke analysis, and corporate access events became premium services, while basic summary reports were offered at a lower price point or as part of a broader subscription. This segmentation was a direct response to the buy-side’s newly implemented, discerning procurement strategies.

A significant consequence of this economic pressure was a recalibration of research coverage. With profitability as a new imperative, many sell-side firms reduced or eliminated coverage of companies that were less likely to generate sufficient research revenue to justify the cost. While initial concerns focused on small and mid-cap (SMID) stocks, some evidence suggests the impact was more nuanced.

Studies have found that coverage reduction was pronounced for large-cap stocks that were already well-covered, as asset managers were unwilling to pay multiple providers for redundant analysis. Conversely, the demand for unique, differentiated insights in less-covered names created opportunities for specialized and [independent research providers](https://prime.greeks.live/area/independent-research-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (IRPs).

> Sell-side providers responded to unbundling by creating tiered service models and re-evaluating the economic viability of their research coverage on a stock-by-stock basis.

The rise of IRPs is a key strategic outcome of the MiFID II framework. These firms, unburdened by the legacy infrastructure of large banks, could often provide specialized, in-depth research in niche sectors at a competitive price point. This introduced a new dynamic to the market, offering the buy-side a wider array of choices beyond the traditional bulge-bracket providers.

![The abstract composition visualizes interconnected liquidity pools and price discovery mechanisms within institutional digital asset derivatives trading. Transparent layers and sharp elements symbolize high-fidelity execution of multi-leg spreads via RFQ protocols, emphasizing capital efficiency and optimized market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-1.jpg)

![A large, smooth sphere, a textured metallic sphere, and a smaller, swirling sphere rest on an angular, dark, reflective surface. This visualizes a principal liquidity pool, complex structured product, and dynamic volatility surface, representing high-fidelity execution within an institutional digital asset derivatives market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-optimized-market-microstructure-precision.jpg)

## Execution

The execution of MiFID II’s unbundling principles has moved the debate from theoretical intent to measurable market impact. Assessing whether research quality has improved requires a granular analysis of several interconnected factors ▴ the evolution of [analyst coverage](https://prime.greeks.live/area/analyst-coverage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), the accuracy of their forecasts, and the overall health of the market’s information environment. The evidence presents a complex and often contradictory picture, suggesting a system that has become more efficient in some respects and more fragile in others.

![A metallic, cross-shaped mechanism centrally positioned on a highly reflective, circular silicon wafer. The surrounding border reveals intricate circuit board patterns, signifying the underlying Prime RFQ and intelligence layer](https://options.greeks.live/wp-content/uploads/2025/08/the-core-institutional-digital-asset-derivatives-rfq-os-engine-for-high-fidelity-market-microstructure.jpg)

## The Measurement Conundrum Defining Research Quality

Quantifying “research quality” is an inherently challenging task. There is no single, universally accepted metric. Instead, a mosaic of indicators must be examined to form a coherent view. The execution of a quality assessment framework involves tracking several distinct data points.

Key metrics for evaluating research quality post-MiFID II include:

- **Forecast Accuracy** ▴ The most direct measure of quality is the precision of analyst earnings per share (EPS) and other financial forecasts. Several academic studies have found a notable improvement in average forecast accuracy since the implementation of MiFID II. This suggests that with buy-side firms now paying explicitly for analysis, the analysts who remain are those with a demonstrable record of superior forecasting ability. The competitive pressure appears to have forced less accurate analysts from the market.

- **Stock Recommendation Profitability** ▴ Another critical metric is the performance of “buy,” “sell,” and “hold” recommendations. Research indicates that post-MiFID II, stock recommendations have become more profitable, and their announcement generates a greater market reaction. This implies that the market is placing a higher value on the remaining research, viewing it as more credible and actionable.

- **Analyst Effort and Focus** ▴ Evidence suggests that the analysts who remain in the market are covering fewer firms and issuing fewer forecasts. This points to an increase in focus, allowing them to dedicate more time and resources to the companies they continue to cover. This increased effort is a likely driver of the observed improvements in forecast accuracy and recommendation performance.

![Institutional-grade infrastructure supports a translucent circular interface, displaying real-time market microstructure for digital asset derivatives price discovery. Geometric forms symbolize precise RFQ protocol execution, enabling high-fidelity multi-leg spread trading, optimizing capital efficiency and mitigating systemic risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-request-for-quote-protocol-high-fidelity-execution-market-microstructure-intelligence-layer.jpg)

## Data Analysis the Shifting Landscape of Coverage

While the quality of individual research reports may have increased, the overall quantity and distribution of research have changed significantly. This has profound implications for the information environment, particularly for certain classes of stocks.

![A blue speckled marble, symbolizing a precise block trade, rests centrally on a translucent bar, representing a robust RFQ protocol. This structured geometric arrangement illustrates complex market microstructure, enabling high-fidelity execution, optimal price discovery, and efficient liquidity aggregation within a principal's operational framework for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-rfq-execution-framework-optimizing-digital-asset-derivatives-liquidity-aggregation-across-complex-market-microstructure.jpg)

## Table of Analyst Coverage Changes Post-MiFID II

The following table provides a hypothetical but representative illustration of the changes in analyst coverage across different market capitalizations, reflecting trends identified in market studies.

| Market Capitalization | Pre-MiFID II Average Analysts Per Firm | Post-MiFID II Average Analysts Per Firm | Net Change | Primary Rationale |
| --- | --- | --- | --- | --- |
| Micro-Cap (< €250M) | 1.8 | 1.2 | -33% | Economically unviable for most sell-side providers under the new model. |
| Small-Cap (€250M – €2B) | 4.5 | 3.5 | -22% | Reduced coverage as buy-side budgets tightened, though some specialist demand remains. |
| Mid-Cap (€2B – €10B) | 12.0 | 10.0 | -17% | Significant drop as overlapping coverage was cut by asset managers. |
| Large-Cap (> €10B) | 20.5 | 18.0 | -12% | Reduction in redundant coverage; firms still well-covered by multiple analysts. |

The data reveals a clear trend of reduced coverage, which, contrary to some initial fears, has disproportionately affected not just the smallest companies but also the larger ones where coverage was previously saturated. The core issue is that while the _average_ quality of a single research report may have improved, the reduction in the total number of analysts creates “information gaps.” For a company that loses all or most of its analyst following, its cost of capital can increase, and its liquidity may decline. This highlights the central trade-off of the unbundling reform ▴ a potential increase in the quality of the remaining research at the cost of a reduction in the breadth of the information environment.

> The unbundling directive appears to have created a more concentrated research market, where higher-quality analysis is available for a smaller universe of companies.

![Sharp, transparent, teal structures and a golden line intersect a dark void. This symbolizes market microstructure for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-leveraging-granular-market-microstructure-intelligence.jpg)

## Systemic Impact a More Efficient but Potentially Less Resilient Market

The execution of MiFID II has resulted in a market that is arguably more rational and cost-efficient. Asset managers now have a clearer understanding of their research costs and are allocating their capital to providers that deliver demonstrable value. This has driven an improvement in the analytical rigor and predictive power of the research that is produced.

However, this efficiency has come at a price. The reduction in overall coverage may lead to a less efficient market for securities that fall outside the focus of the remaining analysts. A decline in the diversity of opinions could also lead to greater consensus thinking and potentially slower price discovery when new, unexpected information emerges.

The system, while more streamlined, may have lost some of its redundancy and resilience. The long-term effects of this trade-off, particularly through different market cycles, remain a critical area of observation for regulators and market participants alike.

![A metallic circular interface, segmented by a prominent 'X' with a luminous central core, visually represents an institutional RFQ protocol. This depicts precise market microstructure, enabling high-fidelity execution for multi-leg spread digital asset derivatives, optimizing capital efficiency across diverse liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-execution-microstructure.jpg)

## References

- Anselmi, Giulio & Giovanni, Petrella. “Regulation and stock market quality ▴ The impact of MiFID II provision on research unbundling.” _International Review of Financial Analysis_, vol. 76(C), 2021.

- Bender, Micha, et al. “A long-term analysis of research unbundling ▴ implications for research provision and market quality.” _SSRN Electronic Journal_, 2023.

- European Securities and Markets Authority. “MiFID II research unbundling ▴ first evidence.” _ESMA Report on Trends, Risks and Vulnerabilities_, no. 2, 2020.

- Guo, B. & Mota, L. “The real effects of the MiFID II research unbundling.” _Working Paper_, 2020.

- Lang, Mark, et al. “MiFID II unbundling and sell-side analyst research.” _Journal of Accounting and Economics_, vol. 77(1), 2024.

- Fang, L. H. et al. “The Effects of MiFID II on Sell-Side Research and Corporate Access.” _Working Paper_, 2020.

- Hong, H. & Kacperczyk, M. “Competition and bias.” _The Quarterly Journal of Economics_, vol. 125(4), 2010, pp. 1763-1817.

- Merkley, K. et al. “The role of the sell-side analyst in the market for corporate control.” _The Accounting Review_, vol. 92(3), 2017, pp. 101-131.

![A sleek, white, semi-spherical Principal's operational framework opens to precise internal FIX Protocol components. A luminous, reflective blue sphere embodies an institutional-grade digital asset derivative, symbolizing optimal price discovery and a robust liquidity pool](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-5.jpg)

## Reflection

![A sophisticated digital asset derivatives trading mechanism features a central processing hub with luminous blue accents, symbolizing an intelligence layer driving high fidelity execution. Transparent circular elements represent dynamic liquidity pools and a complex volatility surface, revealing market microstructure and atomic settlement via an advanced RFQ protocol](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-framework-optimizing-market-microstructure-price-discovery-intelligence-layer.jpg)

## The New Economics of Insight

The structural transformation induced by MiFID II is complete. The unbundling of research payments has permanently altered the flow of information and capital between the producers and consumers of investment analysis. The system now operates on a different economic logic, one that prioritizes demonstrable value over sheer volume. This compels a deeper consideration of how an investment organization defines, sources, and integrates intelligence into its decision-making architecture.

The data suggests a sharpening of the tools available to portfolio managers, with the surviving research providers offering more accurate and impactful analysis. Yet, this refinement has come with a narrowing of the field of view. The reduction in overall coverage presents a new set of systemic risks and opportunities.

It challenges firms to look beyond traditional sell-side inputs and to construct a more diversified and resilient intelligence-gathering apparatus. The question is no longer about adapting to a new rule, but about designing an operational framework that can consistently generate alpha in a market where information itself has been repriced.

![Precision-engineered multi-vane system with opaque, reflective, and translucent teal blades. This visualizes Institutional Grade Digital Asset Derivatives Market Microstructure, driving High-Fidelity Execution via RFQ protocols, optimizing Liquidity Pool aggregation, and Multi-Leg Spread management on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-multi-vane-system-illustrating-institutional-digital-asset-derivatives-rfq-protocols-market-microstructure-optimized-liquidity-aggregation-prime-os-high-fidelity-execution.jpg)

## Glossary

<a href="https://prime.greeks.live/area/sell-side-research/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, circular metallic platform features a central, polished spherical hub, bisected by a taut green band. This embodies a robust Prime RFQ for institutional digital asset derivatives, enabling high-fidelity execution via RFQ protocols, optimizing market microstructure for best execution, and mitigating counterparty risk through atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimizing-high-fidelity-execution-across-diverse-market-microstructures.jpg)

## Sell-Side Research

Meaning ▴ Sell-side research encompasses the analytical reports, financial models, and strategic recommendations generated by investment banks, brokerage firms, and independent research providers for their institutional clients. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-paying-for-research-via-pl-versus-a-research-payment-account/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated digital asset derivatives execution platform showcases its core market microstructure. A speckled surface depicts real-time market data streams](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-microstructure.jpg)

## Research Quality

The choice between P&L and an RPA is a structural decision between funding research as an internal cost or a transparent client expense. </a><a href="https://prime.greeks.live/question/what-are-the-primary-operational-bottlenecks-that-t1-exposes-for-asset-managers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Smooth, layered surfaces represent a Prime RFQ Protocol architecture for Institutional Digital Asset Derivatives. They symbolize integrated Liquidity Pool aggregation and optimized Market Microstructure](https://options.greeks.live/wp-content/uploads/2025/07/market-microstructure-rfq-protocols-for-digital-asset-derivatives.jpg)

## Asset Managers

T+1 exposes critical bottlenecks by compressing settlement, transforming latent process inefficiencies into immediate, high-cost failures. </a><a href="https://prime.greeks.live/area/mifid-ii/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A gold-hued precision instrument with a dark, sharp interface engages a complex circuit board, symbolizing high-fidelity execution within institutional market microstructure. This visual metaphor represents a sophisticated RFQ protocol facilitating private quotation and atomic settlement for digital asset derivatives, optimizing capital efficiency and mitigating counterparty risk](https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-precision-execution-engine-optimizing-digital-asset-derivatives-rfq-protocols-within-market-microstructure.jpg)

## Mifid Ii

Meaning ▴ MiFID II, the Markets in Financial Instruments Directive II, constitutes a comprehensive regulatory framework enacted by the European Union to govern financial markets, investment firms, and trading venues. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-paying-for-research-via-pl-versus-a-research-payment-account/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An abstract visualization of a sophisticated institutional digital asset derivatives trading system. Intersecting transparent layers depict dynamic market microstructure, high-fidelity execution pathways, and liquidity aggregation for RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-institutional-digital-asset-derivatives-rfq-execution.jpg)

## Research Providers

The choice between P&L and an RPA is a structural decision between funding research as an internal cost or a transparent client expense. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-paying-for-research-via-pl-versus-a-research-payment-account/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, abstract system interface with a central spherical lens representing real-time Price Discovery and Implied Volatility analysis for institutional Digital Asset Derivatives. Its precise contours signify High-Fidelity Execution and robust RFQ protocol orchestration, managing latent liquidity and minimizing slippage for optimized Alpha Generation](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-execution-via-optimized-rfq-protocols-enhancing-market-microstructure.jpg)

## Their Research

The choice between P&L and an RPA is a structural decision between funding research as an internal cost or a transparent client expense. </a><a href="https://prime.greeks.live/area/independent-research-providers/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central split circular mechanism, half teal with liquid droplets, intersects four reflective angular planes. This abstractly depicts an institutional RFQ protocol for digital asset options, enabling principal-led liquidity provision and block trade execution with high-fidelity price discovery within a low-latency market microstructure, ensuring capital efficiency and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-protocol-core-system-for-high-fidelity-execution-and-aggregated-liquidity.jpg)

## Independent Research Providers

Meaning ▴ Independent Research Providers (IRPs) are specialized entities that furnish investment analysis, market insights, and strategic recommendations to institutional clients, operating without direct affiliation to a broker-dealer's execution services or investment banking operations. </a><a href="https://prime.greeks.live/area/analyst-coverage/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated system's core component, representing an Execution Management System, drives a precise, luminous RFQ protocol beam. This beam navigates between balanced spheres symbolizing counterparties and intricate market microstructure, facilitating institutional digital asset derivatives trading, optimizing price discovery, and ensuring high-fidelity execution within a prime brokerage framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-10.jpg)

## Analyst Coverage

Meaning ▴ Analyst Coverage refers to the public research and financial analysis published by investment banks, brokerage firms, or independent research houses concerning specific companies, industries, or asset classes, including digital assets and their associated derivatives. </a>

**Tags:** [Small-Cap Coverage](https://options.greeks.live/area/small-cap-coverage/), [Analyst Coverage](https://options.greeks.live/area/analyst-coverage/), [Investment Research Quality](https://options.greeks.live/area/investment-research-quality/), [Forecast Accuracy](https://options.greeks.live/area/forecast-accuracy/), [Research Payment Account](https://options.greeks.live/area/research-payment-account/), [Market Efficiency](https://options.greeks.live/area/market-efficiency/)	

## Discover More

- 
### [What Are the Regulatory Implications of Increased Anonymity in OTC Markets?](https://options.greeks.live/question/what-are-the-regulatory-implications-of-increased-anonymity-in-otc-markets/)
![Sleek, speckled metallic fin extends from a layered base towards a light teal sphere. This depicts Prime RFQ facilitating digital asset derivatives trading. It embodies high-fidelity execution, algorithmic hedging, and market microstructure analysis. The sphere represents a liquidity pool optimized for RFQ protocols and price discovery.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-high-fidelity-execution-intelligence.jpg)

Increased anonymity in OTC markets prompts a regulatory architecture balancing liquidity benefits against systemic risks via precise data-driven oversight.

- 
### [What Is the Relationship between Post-Trade Transparency and Adverse Selection Risk for Block Trades?](https://options.greeks.live/question/what-is-the-relationship-between-post-trade-transparency-and-adverse-selection-risk-for-block-trades/)
![Prime RFQ visualizes institutional digital asset derivatives RFQ protocol and high-fidelity execution. Glowing liquidity streams converge at intelligent routing nodes, aggregating market microstructure for atomic settlement, mitigating counterparty risk within dark liquidity.](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-high-fidelity-digital-asset-derivatives-rfq-protocol.jpg)

Post-trade transparency broadcasts a block trade's information, creating adverse selection risk for the liquidity provider who must manage that exposure.

- 
### [Could the LIS Deferral Mechanism Create an Unfair Informational Advantage for Systematic Internalisers over Other Market Participants?](https://options.greeks.live/question/could-the-lis-deferral-mechanism-create-an-unfair-informational-advantage-for-systematic-internalisers-over-other-market-participants/)
![Central nexus with radiating arms symbolizes a Principal's sophisticated Execution Management System EMS. Segmented areas depict diverse liquidity pools and dark pools, enabling precise price discovery for digital asset derivatives. Circular markers denote RFQ participants, ensuring high-fidelity execution of institutional block trades within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-prime-os-rfq-liquidity-orchestration.jpg)

The LIS deferral mechanism grants Systematic Internalisers a sanctioned, time-limited informational monopoly for risk management.

- 
### [What Are the Regulatory Implications of a Market Freeze Caused by Adverse Selection in Electronic Systems?](https://options.greeks.live/question/what-are-the-regulatory-implications-of-a-market-freeze-caused-by-adverse-selection-in-electronic-systems/)
![A teal sphere with gold bands, symbolizing a discrete digital asset derivative block trade, rests on a precision electronic trading platform. This illustrates granular market microstructure and high-fidelity execution within an RFQ protocol, driven by a Prime RFQ intelligence layer.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivative-rfq-protocol-high-fidelity-execution-platform-microstructure-intelligence-layer.jpg)

Regulatory responses to market freezes involve preventative data transparency and reactive interventions to restore liquidity.

- 
### [What Specific Machine Learning Models Are Most Effective for Detecting Block Trade Anomalies?](https://options.greeks.live/question/what-specific-machine-learning-models-are-most-effective-for-detecting-block-trade-anomalies/)
![Sleek, metallic components with reflective blue surfaces depict an advanced institutional RFQ protocol. Its central pivot and radiating arms symbolize aggregated inquiry for multi-leg spread execution, optimizing order book dynamics. This intricate market microstructure enables high-fidelity execution of digital asset derivatives, ensuring capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-microstructure-for-institutional-digital-asset-derivatives.jpg)

Leveraging machine learning models empowers institutions to proactively detect block trade anomalies, safeguarding capital and enhancing market integrity.

- 
### [What Regulatory Frameworks Govern Information Asymmetry between Lit and Dark Venues?](https://options.greeks.live/question/what-regulatory-frameworks-govern-information-asymmetry-between-lit-and-dark-venues/)
![Sleek, dark grey mechanism, pivoted centrally, embodies an RFQ protocol engine for institutional digital asset derivatives. Diagonally intersecting planes of dark, beige, teal symbolize diverse liquidity pools and complex market microstructure. This highlights high-fidelity execution, price discovery, and atomic settlement via Prime RFQ for block trades.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-powering-high-fidelity-execution-for-multi-leg-spreads-portfolio-margin-and-atomic-settlement-via-prime-os-for-block-trades.jpg)

Regulatory frameworks manage information asymmetry by linking dark venue pricing to lit markets and mandating post-trade transparency.

- 
### [What Is the Direct Impact of Post-Trade Reporting Deferrals on Algorithmic Trading Strategies?](https://options.greeks.live/question/what-is-the-direct-impact-of-post-trade-reporting-deferrals-on-algorithmic-trading-strategies/)
![Two abstract, segmented forms intersect, representing dynamic RFQ protocol interactions and price discovery mechanisms. The layered structures symbolize liquidity aggregation across multi-leg spreads within complex market microstructure. This visualizes institutional execution pathways, emphasizing atomic settlement and capital efficiency in digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-microstructure.jpg)

Post-trade reporting deferrals force algorithmic strategies to evolve from data reactors into predictive engines that model temporary market opacity.

- 
### [How Does Post-Trade Transparency like Trace Affect RFQ Pricing Power in Corporate Bonds?](https://options.greeks.live/question/how-does-post-trade-transparency-like-trace-affect-rfq-pricing-power-in-corporate-bonds/)
![A sophisticated digital asset derivatives execution platform showcases its core market microstructure. A speckled surface depicts real-time market data streams. A teal intelligence layer optimizes price discovery, channeling through a central metallic hub, symbolizing robust atomic settlement and deep liquidity pool integration for institutional RFQ execution.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-core-microstructure.jpg)

Post-trade transparency recalibrates RFQ pricing power by providing a public, verifiable data anchor that reduces dealer information monopoly.

- 
### [How Can Quantitative Analysis Enhance Block Trade Reporting Efficiency and Accuracy?](https://options.greeks.live/question/how-can-quantitative-analysis-enhance-block-trade-reporting-efficiency-and-accuracy/)
![Translucent teal glass pyramid and flat pane, geometrically aligned on a dark base, symbolize market microstructure and price discovery within RFQ protocols for institutional digital asset derivatives. This visualizes multi-leg spread construction, high-fidelity execution via a Principal's operational framework, ensuring atomic settlement for latent liquidity.](https://options.greeks.live/wp-content/uploads/2025/07/transparent-geometric-structures-visualizing-multi-leg-spread-rfq-protocols-for-high-fidelity-institutional-digital-asset-derivatives-execution.jpg)

Quantitative analysis elevates block trade reporting accuracy and efficiency through predictive modeling and rigorous data validation.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "Has the Unbundling of Research under MiFID II Led to a Measurable Improvement in Research Quality?",
            "item": "https://options.greeks.live/question/has-the-unbundling-of-research-under-mifid-ii-led-to-a-measurable-improvement-in-research-quality/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/has-the-unbundling-of-research-under-mifid-ii-led-to-a-measurable-improvement-in-research-quality/"
    },
    "headline": "Has the Unbundling of Research under MiFID II Led to a Measurable Improvement in Research Quality? \u25b4 Question",
    "description": "MiFID II's unbundling improved average research quality by forcing a focus on value, at the cost of reduced overall market coverage. \u25b4 Question",
    "url": "https://options.greeks.live/question/has-the-unbundling-of-research-under-mifid-ii-led-to-a-measurable-improvement-in-research-quality/",
    "datePublished": "2025-08-13T22:21:51+00:00",
    "dateModified": "2025-08-13T22:21:52+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/08/institutional-grade-precision-execution-engine-optimizing-digital-asset-derivatives-rfq-protocols-within-market-microstructure.jpg",
        "caption": "This image powerfully depicts a cutting-edge proprietary system interacting with a digital asset derivatives platform, illustrating advanced market microstructure control. It embodies a robust RFQ engine ensuring optimal price discovery and ultra-low latency execution for institutional block trades. This framework facilitates seamless multi-leg spread strategies and precise delta hedging, crucial for managing gamma exposure and enhancing overall capital efficiency within the Prime RFQ environment, leveraging latent liquidity."
    },
    "keywords": [
        "Analyst Coverage",
        "Buy-Side Strategy",
        "Forecast Accuracy",
        "Independent Research Providers",
        "Information Asymmetry",
        "Investment Research Quality",
        "Market Efficiency",
        "MiFID II",
        "Research Payment Account",
        "Research Unbundling",
        "Sell-Side Research",
        "Small-Cap Coverage"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```


---

**Original URL:** https://options.greeks.live/question/has-the-unbundling-of-research-under-mifid-ii-led-to-a-measurable-improvement-in-research-quality/
