Research Unbundling and Market Liquidity: Evidence from MiFID II

Anqi Fu, Tim Jenkinson, David Newton, Ru Xie

Research output: Contribution to journalArticlepeer-review

1 Citation (SciVal)


The second Markets in Financial Instruments Directive (MiFID II) mandated the unbundling of payments for research and trading. This research explores whether the impact of MiFID II differs between large and small firms in terms of analyst coverage and stock liquidity. Focusing on the UK stock markets we find a significant drop in analyst coverage on the Main Market, which leads to a deterioration in market liquidity. In contrast, the requirement of AIM firms to retain a Nominated Adviser, who often provides research coverage, has mitigated the impact of MiFID II.
Original languageEnglish
JournalEuropean Financial Management
Early online date9 Oct 2023
Publication statusE-pub ahead of print - 9 Oct 2023


  • MiFID II
  • analyst coverage
  • stock liquidity
  • unbundling

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Accounting


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