Tue, Apr 7, 2020

ESMA Statement on MiFID II Best Execution Disclosures

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:

  • When unable to meet the March 31, 2020 deadline, execution venues may publish their RTS 27 disclosures as soon as reasonably practicable after that date and no later than June 30, 2020 (the next reporting deadline)
  • Firms may only be able to publish their RTS 28 disclosures, due by April 30, 2020, on or before June 30, 2020

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.