Joel Steinmetz
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MiFID II requirements do not align with US practices governing the exchange of commissions for execution and research. But a token-based research platform enables a solution that simultaneously complies with regulatory regimes on both sides of the Atlantic, enhances the user experience and generates a network effect that increases the size of the research market in the US.
There is an opportunity to leverage innovative technology and new payment and consumption methods to satisfy the requirements and enable the desirable benefits of both MiFID II research unbundling and Section 28(e) of the US Securities Act of 1934. UAT’s Joel Steinmetz and Allan Chiulli examine the structure and operations of a token, smart contract and blockchain-based platform for U.S. equity research that incorporates Section 28(e) practices in a post-MiFID II environment.
MiFID II requirements do not align with U.S. practices governing the exchange of commissions for execution and research, as permitted by Section 28(e) of the Securities Act of 1934. But there is an opportunity to optimize operations and the benefits from both MiFID II and Section 28(e) using a token, smart contract and blockchain-based research platform that, in turn, satisfies the requirements and enables the desirable benefits of both regulatory regimes.