FIX TRADING COMMUNITY RELEASES RECOMMENDED PRACTICES FOR BEST EXECUTION REPORTING.
FIX Trading Community, the non-profit, industry-driven standards group, launched the final release of its Recommended Practices for Best Execution Reporting as required by MiFID II regulatory technical standards (RTS) 27 & 28.
The document aims to provide guidance on which entities must report under these new requirements, what data they must publish and how often. It also provides clarity as to how these reports apply to different scenarios based on the organisation, their role in the trading workflow and the trading model they employ.
While the concept of best execution for the European Financial Markets was introduced in 2007 under MiFID I, MiFID II has introduced new and wider sweeping reporting requirements. Over the past two years, FIX members have debated and discussed the European Securities and Markets Authority (ESMA) terminology and responded to updates. Moreover, members have engaged with EU National Competent Authorities (NCA) to ensure the work being is appropriate and relevant.
Rebecca Healey, Co-Chair EMEA Regulatory Subcommittee, FIX Trading Community, Head of EMEA Market Structure and Strategy, Liquidnet, noted, “With the MiFID clock ticking, it was critical for all market participants to be able to deliver accurate best execution reports to the regulator in time. By working together across industry disciplines the FIX working group has produced a valuable framework for firms to leverage. By providing the regulator and the wider industry with standardised information on best execution, FIX has made an important contribution to necessary enhanced transparency around best execution.”
Alex Wolcough, Director Appsbroker, added, “MiFID II’s best execution reporting requirements were always going to be a challenge for trading venues and investment firms alike. With a concerted effort from a broad range of stakeholders from across the financial community, we’ve been able to provide a really valuable guide for the industry and, in addition, the changes to the FIXprotocol to support standardised reporting.”