The annual Extel survey has revealed a sharp contraction in the number of equity analysts covering the U.K. stock market, signaling a profound transformation in the City of London’s financial research landscape. Conducted throughout 2024, the survey highlights that brokerage firms and independent research houses are rapidly reducing headcount as trading volumes stagnate and regulatory pressures mount. This decline is reshaping how institutional investors access information, effectively shrinking the analytical coverage available for small- and mid-cap stocks listed on the London Stock Exchange.
The Evolution of Equity Research
For decades, equity research was the engine room of the City, funded largely by bundled trading commissions paid by asset managers. However, the implementation of MiFID II regulations in 2018 mandated the
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