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.
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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:
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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
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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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SteelEye is a RegTech and data analytics firm that was established to reduce the complexity and cost of financial compliance and enable firms globally to manage their regulatory obligations through a single platform.
SteelEye’s ability to bring together, cleanse, index and analyse structured and unstructured data across all asset classes and communication types enables clients to effortlessly meet their regulatory needs, because when all this data is in one place, compliance becomes both easy and cost-effective. And with everything under one lens, firms also gain fresh insight into their business, helping them improve their efficiency and profitability.
To date, SteelEye has launched solutions for record keeping, trade reconstruction, transaction reporting, trade and communications surveillance, best execution reporting, transaction cost analysis and advanced analytics for regulations including MiFID II, EMIR, Dodd-Frank, SMCR and MAR.
