The European Securities and Markets Authority (ESMA) has urged national competent authorities (NCAs) not to prioritise supervisory action against execution venues and firms in respect of the deadlines of the general best execution reports under the second Markets in Financial Instruments Directive (MiFID II) in light of the COVID-19 pandemic.
In a statement, ESMA said: “ESMA and competent authorities are aware of difficulties encountered by execution venues and firms in preparing these reports due to the COVID-19 pandemic and the related actions taken by the member states to prevent contagion.”
ESMA recommended NCAs to consider the possibility that execution venues unable to publish regulatory technical standard (RTS) 27 reports due by 31 March 2020 may only be able to publish them as soon as reasonably practicable after that date and no later than 30 June 2020.
Additionally, it encouraged NCAs to consider that firms may only be able to publish the RTS 28 reports due by 30 April 2020 on or before 30 June 2020.
It added: “ESMA encourages competent authorities to generally apply a risk-based approach in the exercise of supervisory powers in their day-to-day enforcement of RTS 27 and 28 concerning these deadlines.”
This comes shortly after ESMA recently delayed the Securities Financing Transactions Regulation (SFTR), and asked NCAs
“not to prioritise their supervisory actions” towards entities in-scope for the first phase of SFTR until 13 July.
