Odey warns of 'terrifying' MiFID II and tapering combination

'Hindsight will have a field day'

Hedge fund manager Crispin Odey has said the incoming MiFID II rules on research will lead to fewer trades, less price discovery and less efficient markets, and could be devastating to markets when combined with the end of QE.

In a note to investors, Odey warned MiFID II, which comes into effect on 3 January 2018, would cause an increase in capital costs meaning firms with less access to research would trade less, according to Bloomberg. The new European rules require research costs and trading-related charges to be separated, with many firms taking on the research costs themselves. Furthermore, the typically bearish manager said the regulatory changes combined with high asset price valuations and continued central bank bond-buying programmes have left investors in a "terrifying" environment. Odey said q...