European investment platforms are shifting
their focus from traditional funds, like mutual funds, towards
exchange-traded platforms (known as ETFs) on the back of the
new Markets in Financial Instruments Directive (Mifid II).
The landmark directive, which went live on
January 3, mandates greater transparency in trade reporting and
disclosure, especially when it comes to pricing and liquidity.
This could well help uptake of passive investments funds, such
as ETFs, which had until then been considered too opaque for
some investors. ETFs are also cheaper to run than some of their
counterparts, another factor which could also work in their
A lawyer at a UK-based law firm told IFLR that clients are
looking to promote the ETF business more into the spotlight at
the expense of more traditional funds. Clients are said to be
shifting their focus because of Mifid II and the increased
amount of competition for traditional funds. The long-term