Find out how our Best Execution Monitor can help you to comply with the Best Execution reporting requirements.
Best Execution is embedded in Article 27 of MiFID II which requires investment firms to provide the most favourable terms for the execution of client orders with reference to:
It further requires investment firms to create an execution policy and regularly monitor the execution quality when executing orders on behalf of their clients.
3 steps to comply with Best Execution obligations
Accordingly, investment firms are required to take the following steps to comply with Best Execution:
RTS 27 reports – execution venues including trading venues, systematic internalisers, market makers and liquidity providers. In addition, ESMA considers CFD/ FX brokers who ‘deal on own account and regularly quote two-way pricing for an instrument’ would meet the definition of liquidity providers and therefore be subject to RTS 27 reporting obligations (Q18).
RTS 28 reports – investment firms (including CFD/ FX brokers) who execute client orders through execution venues.
While RTS 27 reports are submitted quarterly, RTS 28 reports are submitted annually. We have summarised the important dates in the following table:
|Reports||Reporting Period||Publication Date|
|1 January - 31 March||30 June (same year)|
|1 April - 30 June||30 September (same year)|
|1 July - 30 September||31 December (same year)|
|1 October - 31 December||31 March (following year)|
|1 January - 31 December||30 April (following year)|
RTS 27 reports aim to demonstrate the quality of execution of transactions and are composed of the following nine tables of data:
|1||Type of execution venue|
|2||Type of financial instrument|
|3||Intra-day price information|
|4||Daily price information|
|6||Likelihood of execution information|
|7||Additional likelihood of execution information for continuous auction order book and continuous quote driven execution venues|
|8||Additional information for continuous auction order book and continuous quote driven execution venues|
|9||Additional information for quote execution venues|
MiFID II extends the derivative transaction reporting obligations of MiFID to a larger group of businesses. Read More
EMIR requires all market participants to report details of all derivative contracts (interest rate swaps, FX, credit, equity and commodity) to Trade Repositories. Read More
Find out more about the requirements for Australian OTC derivatives reporting under the ASIC regime. Read More
Find out more about the requirements for Singaporean OTC derivatives reporting under the MAS regime. Read More