ESMA launches a consultation on proposals for improvements to the MiFID II framework on best execution reports. These proposals aim at ensuring effective and consistent regulation and supervision and enhancing investor protection.
ESMA’s proposals include technical changes to:
- the reporting obligations for execution venues:
- aimed at simplifying the reporting requirements by reducing the granularity and volume of data to be reported; and
- moving to a set of seven indicators aimed at disclosing meaningful
information to help firms to assess venues’ execution quality; and
- the reporting requirements for firms: focusing mainly on clarifying
the requirements for firms that transmit client orders or decisions to
deal to third parties for execution.
In addition, it proposes amendments to the relevant provisions of the
MiFID II legislative framework to enable these technical changes to
come into effect in the future.
Stakeholders are invited to provide their responses by 23 December 2021.
Next Steps
Since ESMA’s technical proposals can only be implemented after the
relevant provisions of MiFID II have been amended, the outcome of this
consultation will not lead to any immediate change of the existing RTSs
27 and 28 which currently regulate best execution reporting by execution
venues and investment firms.
However, ESMA will consider the input received in supporting the
European Commission in its assessment of the adequacy of the best
execution reporting obligations, and any subsequent technical work to
shape a well-functioning reporting regime.
esma35-43-2836_cp_-_best_execution_reports.pdf
ESMA
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