The European Association of Co-operative Banks welcomes the opportunity to be able to provide its views on the ESMA consultation regarding the review of the MiFID best execution reporting regime (ESMA35-43-2836). During the start of the COVID pandemic, the members of the EACB were actively engaged on the discussions surrounding the proposed amendments being made by the European Commission to MiFID II under the Capital Markets Recovery Package.
In fact, EACB members had supported the ‘MiFID quick fix’ as disclosed under Article 1 (6) of Directive (EU) 2021/338, which provides for a temporary suspension of RTS 27 of MiFID II until 28 February 2023. EACB had also supported a similar proposal for RTS 28, MiFID II – although this was never adopted – for similar reasons behind the temporary suspension of RTS 27, i.e. costliness of implementation of the reports in comparison to the low usage of such reports by investors, and the fact that the buy-side seems to receive its information on the orders from other means.
Following the publication on 25 November 2021 of the European Commission’s proposal for a directive amending MiFID, the EACB would like to extend its support for the proposed abolition of RTS 27 best execution reports in lieu of the regulation setting up a consolidated tape published on the same date. We also believe that the above abolition should be extended to RTS 28 reports and that the proposed directive should be amended accordingly to reflect this proposal.
For further information, please download our position paper.