It is very interesting to hear that US Small & Mid cap are considering paying for sponsored research to offset the potential threats of shrinking coverage by brokers.

The following article highlights the difficulties that will come in the small & mid cap universe. But more interestingly it shows that we are currently only seeing the early signs of a global reshuffle of Brokers/Corporates/Investors relations.

This impact of MiFID2 in the US should warn us in Europe of this raising issue.

There is no escape, accessing investors and retaining their attention will without no doubt need additional investments from corporates. Unfortunately, one could assume that these costs will be inversely proportional to corporates’ market capitalization.