UK SMID Analyst Ranks Shrink to 9 Sectors as MIFID II Cuts Research Coverage
Updated
Updated · CNBC · Jun 17
UK SMID Analyst Ranks Shrink to 9 Sectors as MIFID II Cuts Research Coverage
1 articles · Updated · CNBC · Jun 17
Summary
Extel’s 2026 UK small- and mid-cap broker rankings showed the market now spans just 9 sectors, down from 18 in 2007, underscoring how much research coverage has thinned.
MIFID II, introduced in 2018, forced brokers to price research separately from trading commissions, a change Extel CEO David Enticknap said dealt equity research a painful blow.
Analyst headcount has fallen sharply in key areas: retail analysts dropped to 17 from 29 since 2007, while support services analysts fell to 20 from 26.
The contraction has been reinforced by industry consolidation, including Deutsche Bank’s 2023 purchase of Numis, Panmure Gordon’s 2024 merger with Liberum, and Stifel’s 2025 closure of its UK equities business.
FCA rule easing after the 2023 Investment Research Review has raised tentative hopes of recovery, but Extel says research must regain buy-side support and attract younger recruits for London’s market to revive.