The allegation here is that the Japan-based Nomura Securities are charging outrageous sums of money for their investment research papers and the content of these research papers turns out to be “bad research.”
Nomura Is Out of Their God Damned Minds: Japanese Crazies Want to Charge Six Figs For Bad Research
Dr. Fly Thu Jun 22, 2017 12:44pm EST 5 Comments
These people are so disconnected from reality, they probably think charging six figs for their subpar, shit, research is a bargain.
Starting early 2018, the EU will ban brokerages from bundling research with commissions, citing conflicts of interest, which will force banks to find a way to monetize of even justify the existence of their expensive research departments. They are exactly like newspapers, only with highly profitable trading and fee based divisions that make it bearable. But with new rules taking place, Nomura believes they have to charge 120,000 euros per annum to clients to access their reports.
That’s what the Japanese bank quoted in April for an all-inclusive “premium offering,” according to a pricing document seen by Bloomberg News. While Nomura said pricing is still fluid and it’s being flexible in talks with clients, the guidance may indicate how banks and their clients will settle on how to value something they’ve rarely charged for.
The European Union’s MiFID II regulations, which will be enforced from Jan. 3, aim to tackle conflicts of interest by requiring asset managers to separate the trading commissions they pay from investment-research fees. Banks have worked to find a model to sell their research at a price that won’t drive away clients, while also not being so low that regulators accuse them of gaming the system.
Cheaper options will include a la carte currency and economic reports — for the bargain price of 60k euros. For EM, fixed income and credit, prices will start at 80k euros.
Who’s ready to sign up?