Northern Trust Poised to Support MiFID II Managers Responding to Upcoming Regulatory Changes

Following the expiration of the U.S. Securities and Exchange Commission’s (SEC) No Action Letter relating to research payments on July 3, 2023, Northern Trust (Nasdaq: NTRS) is working to find solutions for MiFID II managers facing potential difficulties paying US bank research providers.

"The recent US regulatory developments combined with potential changes in research funding regulations in the UK and EU may present both challenges and opportunities for asset managers to optimize research access,” said Glenn Poulter, global head of brokerage and integrated trading solutions, at Northern Trust. "Northern Trust Capital Markets is focused on helping our clients to streamline their processes and improve efficiencies as part of our strategy to provide integrated services and technology across the investment lifecycle.”

Northern Trust Capital Markets is collaborating with independent consultant, Frost Consulting, to examine the challenges for MiFID II in scope managers, who may face potential difficulties paying U.S. bank research providers which have not registered as Registered Investment Advisors (RIAs), or are unable or unwilling to accept hard dollar payments at their European office(s) for global research services.

Northern Trust Capital Markets aligns execution, transactional, lending and financing solutions in equities, fixed income and derivatives, transition management, foreign exchange, and securities finance.

"By working with Frost Consulting, we aim to be agile as the regulations change and be quickly able to provide MiFID II governed clients with access to enhanced tools that could help them retain U.S. bank research relationships that might otherwise be lost,” said Poulter.

Northern Trust Capital Markets provides brokerage, foreign exchange, securities finance and transition management services. Comprising more than 500 specialist employees across nine servicing locations, it offers asset managers and asset owners a holistic approach designed to deliver greater value. It is a division of Northern Trust Asset Servicing, which provides asset servicing, fund administration and middle office solutions to institutional asset managers and asset owners around the globe.

About Northern Trust Capital Markets

Northern Trust Capital Markets is comprised of a number of Northern Trust entities that provide trading and execution services on behalf of institutional clients, including foreign exchange, institutional brokerage, securities finance and transition management services. Institutional Brokerage services including ITS are provided by Northern Trust Global Services SE (NTGS SE) in the European Economic Area (EEA), Northern Trust Securities LLP (NTS LLP) in the rest of EMEA, Northern Trust Securities Australia Pty Ltd (NTSA) in APAC and Northern Trust Securities, Inc. (NTSI) in the United States, member FINRA, SIPC and a subsidiary of Northern Trust Corporation.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 25 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2023, Northern Trust had assets under custody/administration of US$14.5 trillion, and assets under management of US$1.4 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

http://www.northerntrust.com

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