On 14 December 2022, the European Securities and Markets Authority (ESMA) published a public statement concerning the deprioritisation of supervisory actions on the obligation to publish RTS 27 reports after 28 February 2023 in light of the ongoing legislative procedure on the MiFID II/MiFIR review.
Article 27(3) of MiFID II requires execution venues to make available to the public reports related to the quality of execution of transactions on their venues. The so-called Regulatory Technical Standard (RTS) 27 further specifies the content and format of these reports (RTS 27 reports).
The MiFID II amending Directive (Directive (EU) 2021/338) provides for a temporary suspension of the periodic reporting obligation to the public on execution venues in Article 27(3) of MiFID II until 28 February 2023. The legislative proposal published by the European Commission in November 2021 on the review of MiFIR and MiFID II included a proposal to delete the RTS 27 reporting obligation. However, the legislative procedure for the legislative proposal is unlikely to be concluded by 28 February 2023 (the expiration date of the temporary suspension of the RTS 27 reporting obligation).
In light of this, ESMA provides in the public statement that from 1 March 2023 until the amendment to Article 27(3) of MIFID II applies, it expects Member State competent authorities not to prioritise supervisory actions towards execution venues relating to the periodic reporting obligation on them to publish the RTS 27
reports. ESMA will monitor the legislative procedure relating to the MiFID II/MiFIR review and will update the public statement as necessary.