Packing up for a Job in the EU? Look Before You Leap
Considering a post in the EU? Make sure to get the deal in writing and any signing bonuses you can. Coming updates to MiFID as well as other EU regulatory measures are sure to impact investment bankers, and many are waiting to see what the changes will mean to the market. Increased and more stringent regulation is sure to put the breaks on at least some hiring.
Similar to moves by the SEC, European regulators are now looking to drain the business out of dark pools by putting in place transparency requirements for bonds and OTC derivative products. Right now, MiFID transparency rules only apply to shares. Expect the job market for derivatives traders to slow.
By July 2012, EU regulation will come to naked short-selling. New transparency requirements are also ahead for short sellers. While it's difficult to assess the total impact of all this, it's certainly likely that smaller investment managers may feel the brunt of additional expenses. Look to some contraction in this sector.
The EU is also delving into putting limits on the commodities market, a response to worries about speculation. Word is that commodities regulation was short changed in the first go round of the MiFID, and now EU regulators are looking to remedy the oversight.
But no matter the tightening rules, profits in the commodities market are too good to miss. Hiring by some of the top global banks indicates the staying power of the sector. A flurry of openings is expected at UBS, which recently announced its reentry into the sector. There's also word of hiring at Standard Chartered.