Friday October 20 2017

News Source: Fund Regulation

Focus: MIFID and MIFIR

Type: General

Country: European Union




On the 12th October 2017, Fix Trading Community published a document advising on the best execution of MiFID II RTS 27 & 28 reporting.

There are 3 main reporting requirements:

  • RTS 27: the data to be published by venues on the quality of execution of transactions including investment firms operating as a Systematic Internaliser or as a Organised Trading Facility (OTF) for non-equity instruments
  • RTS 28: the data to be published by investment firms on the identity of execution venues used and on the quality of execution, plus a summary of the analysis and conclusions drawn from monitoring the quality of execution provided by the venues it used, including itself when executing using its own Systematic Internaliser or other liquidity provider.
  • Delegated Act 2398 Article 65 of MIFIR; the data to be published by investment firms on the identity of the top five brokers in terms of trading volumes where it transmitted orders or placed orders which resulted in an execution and this should be consistent with the information published under RTS 28.

Under the latest ESMA Q&A guidance execution venues and firms are required to make the RTS 27 reports available to the public, without any charges, in a machine readable and electronic format.

The regulatory objective is that industry participants should be able to compare execution performance, depth of liquidity and speed of execution between multiple venues across the same asset class.

To ensure that such reports are freely accessible, firms should publish these reports on their respective websites in an easily identifiable location on a page without any access limitations.  ESMA notes in Q&A guidance that these reports should not be placed behind a firewall, registration page or be subject to password encryption or other restrictions.

It is the consensus of the group that RTS 27 data should be made available to download on a per instrument basis or collectively in one download to ensure there is no restriction in accessing RTS 27 data in the format required.

As the file must be machine readable, the FIX Trading Community recommends providing this data using XML schema.

Please click on the above link for further information.