Tue, Apr 7, 2020
The European Securities and Markets Authority (ESMA) has issued a public statement in which it recognizes that, due to the challenging circumstances created by the COVID-19 outbreak, execution venues and firms may have to deprioritize the publications of MiFID II best execution disclosures required under RTS 27 and RTS 28.
ESMA invites National Competent Authorities (NCAs) to consider these circumstances and the possibility that:
ESMA invites NCAs to exercise supervisory forbearance in respect of venues and firms meeting the deadlines for making best execution disclosures relating to the periods above, and to generally apply a risk-based approach in their day-to-day enforcement of RTS 27 and RTS 28.
ESMA also recommends firms keep records of internal decisions taken in respect of the expected delays in publishing the reports and reminds them of their best execution, as well as their fair order handling and allocation obligations during this period of high market volatility.
Read the full statement here.