The FIX Trading Community has issued the final release of its Recommended Practices for Best Execution Reporting as required under Markets in Financial Instruments Directive II (MiFID II) Regulatory Technical Standards (RTS) 27 and 28. The document provides guidance on how to populate reports required under RTS 27 and 28 with appropriate data in a compliant and consistent manner.
Release of the FIX Trading Community’s recommended practices for best execution reporting follows two years of discussion by FIX members on the European Securities and Markets Authority’s (ESMA) terminology, responses to updates, and engagement with EU National Competent Authorities (NCAs) to ensure work being done is relevant.
The resulting document explains which entities must report under MiFID II, what data they must publish, and how often. It also provides clarity as to how these reports apply to different scenarios based on the entity, its role in the trading workflow and the trading model it employs. Changes to the FIX protocol have been made to support FIX recommended standardised reporting.
Rebecca Healey, co-chair EMEA regulatory subcommittee, FIX Trading Community, and head of EMEA market structure and strategy, Liquidnet, notes: “With the MiFID clock ticking, it is critical for all market participants to be able to deliver accurate best execution reports to the regulator on time. The FIX working group has produced a valuable framework for firms to leverage. By providing the regulator and industry with standardised information on best execution, FIX has also made a contribution to enhanced transparency around best execution.”