…”While demand for access to investment recommendations remains strong,” the authors write, “the delivery and consumption of these recommendations is undergoing a radical transformation.” Radical enough to shock experts: Beattie tells Institutional Investor she was surprised by how little buy-side firms said they value research from the sell side. More and more, she says, the buy side is conducting in-house research and looking to the sell side for a “set of cumulative ideas” to cross-check its own views against…

…”They will hone their market making skills and we will see a number of them become big established names,” said Niki Beattie, a Merrill Lynch alum who now heads adviser Market Structure Partners. “Over time, yes, these guys can replace what banks did.”…

…“They will hone their market making skills and we will see a number of them become big established names,” said Niki Beattie, a Merrill Lynch alum who now heads adviser Market Structure Partners. “Over time, yes, these guys can replace what banks did.”

…“I get a lot of questions about ICAP as a possible target for exchanges,” said Niki Beattie, head of Market Structure Partners, which advises brokers and exchanges. “If the LSE deal doesn’t go ahead, people think there will be a lot of interest in ICAP.”…

…“It pays to be the second or third try to create competition, as the pioneers always burn too much capital before they can get their platform working,” said Niki Beattie, head of Market Structure Partners, which advises brokers and exchanges. The new futures market could also be used to argue to regulators that the LSE acquisition will still allow for plenty of European competition, she said.

Still, Beattie has her doubts.

“There are so many hurdles to overcome en route to building liquidity,” she said. “You have to have a core group of people ready to go live at the same time.”…

Market Structure Partners was instrumental in writing a report for the Australian bank and brokerage community that contributed to the discussion about competition in clearing which led to this recent decision:

On 30th March 2016, the Australian Treasurer released a statement announcing “a reform package that opens the door to competition in the clearing of cash equities, acting on the recommendations of the Council of Financial Regulators’ (CFR) Review of Competition in Clearing Australian Cash Equities.”

More information on the consultation with links to key documents can be found here.

…At the least, a counterbid could force Deutsche Boerse to increase its offer, one of the people said. “LSE is clearly a highly sought after strategic asset,” said Niki Beattie, head of Market Structure Partners, which advises brokers and exchanges. “Deutsche Boerse has probably been doing the courting for longer than ICE, so I think they’re coming from behind.” …

…Executives and analysts alike say the LSE is officially “in play” after it revealed last week it was in talks about an all-share “merger of equals” with Deutsche Börse. On Tuesday ICE indicated it too may make a bid. “The LSE is a pretty hot target and is a massive foothold in European financial markets. Now the LSE is in play you can’t afford not to be a bidder,” said Niki Beattie, head of Market Structure Partners, a consultancy. … Ms Beattie, a former bank head of electronic trading, thinks a deal for the LSE will happen after years of unconsummated bids. “I think that’s why the banks won’t lobby against it this time — the cost savings [from netting margins] will be too great for banks exhausted by regulatory issues.”

“I think it’s not necessarily about synergies and cost savings for the exchanges themselves — although they should have them from clearing and technology combinations,” said Niki Beattie, head of Market Structure Partners, which advises brokers and exchanges, in a phone interview. “It’s more about the opportunity to create a European super exchange before one of the U.S. exchanges or Hong Kong Exchanges & Clearing Ltd. take that opportunity away.”

“…Just as MiFID enabled a light to be shone on the pricing of equity execution, that focus on cost, wherever it resides in the transaction value chain, will only continue. The current suite of regulatory initiatives will simply require firms to examine costs across different segments of their business processes. Banks are particularly challenged with the complexity of dealing with the current waves of change presented by each regulatory initiative, in all the various jurisdictions where they operate…”