In light of the COVID-19 pandemic ESMA has issued a public statement to clarify issues regarding the best execution reporting required by execution venues and firms under RTS 27 and 28 of MiFID II.
In the statement, ESMA announce that they are aware of the difficulties faced by execution venues and firms in preparing these reports due to COVID-19. As such, they recommend that NCAs consider the following:
Execution venues unable to publish RTS 27 reports due by 31 March 2020 may only be able to publish them as soon as reasonably practicable after that date and no later than by the following reporting deadline (i.e. 30 June 2020); and
Firms may only be able to publish the RTS 28 reports due by 30 April 2020 on or before 30 June 2020.
With this in mind, ESMA encourages NCAs not to prioritise supervisory action against execution venues and firms in respect of the deadlines of the RTS 27 and 28 best execution reports for these periods. Furthermore, ESMA encourages competent authorities to generally apply a risk-based approach in the exercise of supervisory powers in their day-to-day enforcement of RTS 27 and 28 concerning these deadlines.
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