On 31 March 2021, the European Securities and Markets Authority (ESMA) issued a statement concerning the temporary suspension of the obligation on execution venues to make available to the public data related to the quality of execution of transactions on their venues.
Directive (EU) 2021/3383 (amending Directive) is part of a package of EU legislative measures designed to support the recovery from the economic shock caused by the COVID-19 pandemic. In particular, it makes targeted amendments to MiFID II including a temporary suspension of the obligation on execution venues to make available to the public data related to the quality of execution of transactions on their venues (RTS 27 reports).
The statement notes that the legislative aim, as evidenced by the text agreed as part of the political compromise in December 2020, was to suspend the best execution reports for two years as of the entry into force of the amending Directive.
ESMA recognises the aim of the suspension and the specific issues identified in the amending Directive with regard to the usefulness of RTS 27 reports. ESMA therefore expects Member State competent authorities not to prioritise supervisory actions towards execution venues relating to the obligation to publish the RTS 27 reports until the date on which the national transposition measures of the amending Directive postpone that obligation in national law.