FREE

Hardman Monthly - October 2017: Liquidity – little understood, even before MiFID II

In the October edition of the Hardman Monthly newsletter, Chief Executive, Keith Hiscock analyses the much misunderstood – but highly important – issue of stock liquidity. In particular, he focuses on the lower echelons of the Main Market and of AIM.
The conclusions are very revealing – and very relevant to Chief Executives and Finance Directors of such companies, who fret over the apparent low market rating accorded to their company’s stock.

â–º The introduction of the apparently obscure MiFID II in January 2018 will have far-reaching market-related consequences;
► Hardman’s analysis indicated that the commission ‘pot’ is set to plunge by up to 75%;
► As such, it will broadly only be commercially viable for house brokers – or a specialise research house, like Hardman – to analyse those Main Market company’s capitalised at less that £500m;
► In terms of AIM listed stocks, the threshold, calculated by Hardman, is slightly higher – at £700m;
► Consequently, Executives of every quoted company with a capitalisation below £700m need to address – as a matter of urgency – how they will respond to the expected sea-change in investment research availability.