On the 8 June 2016, the European Commission (the “EC”) adopted the latest Delegated Acts to supplement MiFID II and its regulatory technical standards (“RTS”) in relation to the reporting requirements and obligation to execute orders on terms most favourable to the client (article 27). Notwithstanding the recent Brexit decision and until there is further clarity, firms should still be working towards conforming to the MiFID II rules as they will come into effect prior to the UK leaving the EU.

The rules under MiFID II, and the principal points from the Delegated Acts, are summarised below.

Rule 1:

MiFID II and the RTS require that data in relation certain instruments that are subject to trading obligations must be made available to the public by execution venues, without any charge, on at least an annual basis. This data should relate to the quality of execution of transactions on that venue.

The Delegated Act:

The Delegated Regulation specifies the:

  • content and format of these periodic reports;
  • information to be provided by execution venues for each financial instrument;
  • information required in relation to price, costs and likelihood of execution;
  • additional information required to be published by execution venues; and
  • rules on the periodicity of the information to be published.

Rule 2:

MiFID II and the RTS requires investment firms who execute client orders to summarise and produce an annual publication of the top 5 execution venues in terms of trading, and the quality of execution obtained for each class of financial instruments.

The Delegated Act:

The Delegated Regulation contains:

  • further definitions for clarity;
  • the content of information required;
  • the distinction in information required to be provided to retail and professional clients; and
  • the format and the location of the information to be published.

The Delegated Regulations are still subject to the scrutiny of the Council of Europe and the European Parliament.

You can find the full text of the Delegated Regulations here:   http://ec.europa.eu/finance/securities/docs/isd/mifid/rts/160608-rts-27_en.pdf ; and


Should you require any assistance or further information in relation to MiFID II or what it means for your business, Cleveland & Co, your external in-house counsel, is here to help.