Buy-side shifts focus from MiFID II to Bitcoin

Survey by Linedata suggests the buy-side is less concerned about MiFID II but increasingly interested in cryptocurrencies.

Asset managers are shifting their attention from regulatory matters, such as MiFID, II to cryptocurrencies and emerging disruptive technologies, according to a new survey from Linedata.  

Linedata’s annual global asset management survey found that 20% of those surveyed, including asset managers, hedge funds and wealth managers, agreed cryptocurrencies like Bitcoin are a key area of growth over the next 12 months.

At the same, the percentage of buy-siders concerned with regulatory changes has decreased as digital assets are fast becoming a strong candidate for new investment opportunities.

Linedata’s 2017 survey found 51% of asset managers saw regulation such as MiFID II as a major concern over the forthcoming year, however this year that figure has fallen to 37%.

“Now that the regulatory dust has settled asset managers are looking to future growth and the challenges and the opportunities offered by emerging disruptive technologies,” said Sophie Février, co-head of asset management and innovation director at Linedata.

“The years ahead will bring exciting change as conceptual testing leads to implementation in areas such as robotic process automation and artificial intelligence tools.”

MiFID II remains, however, the regulation with the greatest business impact according to 52% of respondents, due to trade and transaction reporting and product governance requirements.

Arnaud Allmang, co-head of asset management at Linedata, added that the survey reflects a sector embarking on a transformation process to succeed and grow.

“The emergence of big data and analytics allows asset management firms to enhance the efficiency of their decision-making process, and to provide products and services to clients, which can distinguish them from the crowd,” he said.