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ERROR: type should be string, got "https://www.businessinsider.com/europs-bank-analysts-getting-crushed-small-firms-hit-the-worst-2018-11?utm_source=hearst&utm_medium=referral&utm_content=allverticals\nBank analysts are getting crushed in Europe — and smaller firms are getting hit the worst\nTrista Kelley, provided by\nPublished 2:33 am CST, Sunday, November 4, 2018\nRevenues for banks from European equity research are plummeting in the aftermath of the introduction of MiFID II.\nBanks will be earning about 20% less on their European equity research — a drop of about $300 million — by the start of 2019, according to a report from Greenwich Associates.\nUnder MiFID, a 7,000 page tome that aims to increase transparency on how clients are charged for services, banks must charge separately for research and trading.\nLONDON — Bad news for analysts who publish research on European companies: investment banks will be earning about 20% less on their European equity research — a drop of about $300 million — by the start of 2019.\nThat's according to a report from Greenwich Associates, which attributed the declines to the fallout from new regulations that kicked in this year known as MiFID II. Research budgets are also being slashed. The largest funds in the region cut their budgets for external European equity research by 19% in 2018, and they're planning another 5% to 6% reduction next year.\nIt's a grim, but not unexpected, outcome from the European law, which kicked in on January 3. Under MiFID, a 7,000 page tome that aims to increase transparency on how clients are charged for services, banks must charge separately for research and trading. (Previously, banks handed out research for free to lure trading commissions.)\nWhile charging separately for research and trading, also known as \"unbundling,\" has won some fans, the reporting costs and requirements are onerous even for giant banks with huge compliance departments. For smaller firms, it's a nightmare.\nJust how much is MiFID hurting the little guys? Greenwich released a report on that, too. And surprise, surprise:\n\"So far, the biggest winners from the industry-changing 'unbundling' regulations have been global bulge-bracket dealers,\" Greenwich said on September 25. The law has helped catapult big banks even further ahead of their smaller peers. \"Global bulge-bracket brokers have clearly increased relative share and impact since MiFID II went live.”\nThe biggest winners in European equity trading this year: Bank of America Merrill Lynch and UBS, which together lead the market in trading share, followed by JPMorgan, Credit Suisse and Morgan Stanley.\nAnd those firms and their biggest rivals may get an even bigger slice of that commission pie. Their clients, the big investment firms, have been holding back about 30% of their total annual research budget for allocation, Greenwich estimates, meaning that some $300 million in unallocated research budget is up for grabs.\nThat extra cash \"will likely be used to top off and award current providers for additional service throughout the year,\" the firm said. “With so many hands in a smaller cookie jar, this unallocated budget will be incentive enough for global investment banks to provide exceptional service to their clients.”\nBut one London fund manager pushed back on this idea, saying that the world of fund management is not unlike the big government bureaucracies, in that if you don't spend your budget, by next year, you lose it.\nJoin the conversation about this story »\nNOW WATCH: 4 lottery winners who lost it all\nThe 20 best smartphones in the world\nThis couple invented a clever piece of luggage so you'll never have to check your bags again — here's how it works\nThe US Air Force still can't explain why it spent $1,280 on a coffee cup\nSEE ALSO: Sweeping financial reforms are set to go live Wednesday — here's how banks will be affected\nInstagram is getting rid of the total number of likes in Australia – and it could soon be the new normal\nHere are the executives running the biggest and most important self-driving-car companies\nAmazon blew Prime Day sales out of the water this year, and that could put a bigger target on its back\nLiquid Death, the punk rock canned water startup that went viral after raising $1.6 million in May, is in talks to raise up to $10 million in Series A funding\nAngels throw at Astros player's neck in retaliation for collision\nHere are the participating restaurants in Houston Restaurant Weeks 2019 (so far)"