About a-team Marketing Services
The knowledge platform for the financial technology industry

A-Team Insight Blogs

ESMA Relaxes Best Execution Reporting Requirements in Response to COVID-19

Subscribe to our newsletter

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has relaxed its requirements regarding the publication by execution venues and firms of the general best execution reports required under RTS 27 and 28 of MiFID II, in light of the COVID-19 pandemic.

In a statement issued on 31 March, the regulator noted that it was aware of the difficulties that venues and firms were encountering in preparing the reports, given the steps being taken to prevent contagion. It therefore has recommended that national authorities extend the 31 March deadline for RTS27 reports by three months to 30 June, 2020 (although recommends they be published “as soon as reasonably practicable”), with the same deadline also applying to RTS28 reports currently due by 30 April.

“In view of the exceptional circumstances, ESMA encourages national competent authorities not to prioritise supervisory action against execution venues and firms in respect of the deadlines of the general best execution reports for the periods referred to above,” says the regulator. “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.”

The move has been met with relief by industry participants. ““The biggest ongoing regulatory challenges revolve around best execution and regulatory reporting,” confirms Chris Hollands, Head of European and North American Sales at TradingScreen, speaking to RegTech Insight. “As COVID-19 takes a stronghold on global markets, it is easy to understand why ESMA is relaxing requirements for RTS 27 and RTS 28. Investment managers need additional time to adjust to regulatory change, as opposed to preparing for new rules in the midst of this unprecedented period of market volatility and record volumes.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Navigating the Build vs Buy Dilemma: Cloud Strategies for Accelerating Quantitative Research

For many quantitative trading firms and asset managers, building a self-provisioned historical market data environment remains one of the most time-consuming and resource-intensive steps in establishing a new research capability. Sourcing data, normalising symbologies, handling corporate actions and maintaining infrastructure can take months and absorb significant budget before a single model is tested. At the...

BLOG

CFTC’s Selig Sets Out Agenda for Leaner Rules and Faster Markets

Michael Selig has placed derivatives regulation at the centre of the US competitiveness agenda, using his keynote at the ISDA annual meeting to call for a more proportionate rulebook, deeper SEC and CFTC alignment, and a clearer path for innovation in swaps, clearing, tokenised collateral and market structure. He framed the CFTC’s task as keeping...

EVENT

Digital Assets & Tokenisation Briefing, New York

A-Team Group’s Digital Assets & Tokenisation Briefing assembles an exclusive group of CxOs and senior technology innovators. These leading market practitioners and infrastructure providers are collectively building the digital rails and decentralised networks that will power Wall Street 2.0.

GUIDE

Regulatory Data Handbook 2026 – Fourteenth Edition

Welcome to the fourteenth edition of A-Team Group’s Regulatory Data Handbook. Supervisors increasingly expect firms to demonstrate which rules apply, which data supports each obligation, who owns the control and how exceptions are identified and resolved. Policies and implementation programmes must now be supported by records that can withstand regulatory scrutiny. This edition examines material...