The Financial Conduct Authority (FCA) in United Kingdom released a Policy Statement (PS 21/20) on 30 November 2021, summarising the feedback received to CP21/9 and outlining their final policy position and Handbook rules. The removal of RTS 27 and 28 best execution reporting requirements is effective as of 1 December 2021.
MiFID II aims to increase transparency and improve information about how firms execute and transmit their client orders and their outcomes that they obtain for their clients. However, the FCA has found that the information from the RTS 27 and 28 reports has not delivered their intended policy objectives and created unnecessary costs for execution firms and trading venues.
From the feedback received in response to the CP21/9, 33 out of 34 respondents supported the deletion of RTS 27 and 28 reports. The FCA noted that there are very few users of these reports and almost all respondents prefer a complete removal of such obligations. Consequently, the FCA has decided to remove the RTS 27 and 28 reporting obligations from 1 December 2021 onwards. Despite the removal, the FCA will keep this issue under review and reflect again in light of their and the Treasury’s work as part of the Wholesale Markets Review including on market data.