As the data publishing season for best execution begins, it is timely to look at what is required, and what will be required going forward.
For execution venues, data from the 1st January to 31st March has to hit the streets by (tomorrow) 30th June. Thus it is a good time to reflect on what the drivers behind best execution are. We need to bear in mind that regulators want to ensure improved disclosure over dealing policies and how firms review best practice to achieve best execution.
From the beginning, the primary objective of MiFID II/MiFIR was to improve the efficiency and integrity of European capital markets. Inherent in this tome of regulation were the sections dealing with best execution (RTS 27 & RTS 28). These aim to strengthen the obligation on financial organisations to ensure best possible execution for their clients.
Like so many of you, we are eagerly waiting for the first tranche of data and to work out what the data means, what we can learn from it, and how it can be used.
We have already started working on a Whitepaper looking at the recent changes made by ESMA around pre-trade transparency, and how price is still one of the most critical factor for customers.
The Whitepaper will also be reviewing whether the newly released data lives up to the hype, and what insights it will give us all on quality of execution. The release of the data is only the first step in a cyclical process of publishing, analysing and refining your execution policy.
Sign up to our Insights to be one of the first to receive the Whitepaper when it is released in a few weeks.
