The European Securities and Markets Authority has published a statement encouraging national regulators to deprioritize supervisory actions against firms that fail to meet best execution reporting deadlines under the revised Markets in Financial Instruments Directive. The MiFID II best execution requirements oblige investment firms to obtain the best possible result for their clients when executing client orders, and require execution venues and investment firms to make data relating to the quality of execution of transactions publically available.
Under the MiFID II Regulatory Technical Standards governing best execution requirements:
ESMA acknowledges that firms need to prioritize their efforts to combat the effects of COVID-19 on financial markets. National regulators should therefore accept the possibility that execution venues may only be able to publish their latest quarterly reports as soon as reasonably practicable after the anticipated March 31, 2020 deadline, but by no later than the following quarterly deadline (on June 30, 2020). For investment firms, national regulators should accept the possibility that reports may not be published until June 30, 2020 (at the latest). National regulators should also apply a risk-based approach in enforcing the relevant RTS. ESMA also recommends that execution venues and investment firms record their internal decision-making in respect of any delayed reporting.
View ESMA's statement on best execution reporting deadlines under MiFID II.
[View source.]
