On June 8, 2016, a Commission Delegated Regulation supplementing MiFID with regard to RTS concerning the data to be published by execution venues on the quality of execution of transactions was adopted by the European Commission. MiFID II requires that, for financial instruments subject to the trading obligation, each trading venue and systematic internaliser (and for other financial instruments, each execution venue) make data available to the public relating to the quality of execution of transactions on that venue on at least an annual basis. The adopted Regulation specifies the content, format and periodicity of data relating to quality of execution to be published by execution venues.
The adopted Regulation sets out specific information to be provided by execution venues in relation to price, costs and likelihood of execution. The adopted regulation also specifies additional information that must be published for continuous order book and continuous-quote driven execution venues, which includes best bid and offer prices and corresponding values. Periodic reports must include details about price, costs, speed and likelihood of execution for individual financial instruments as well as the book depth for three price increments. The adopted Regulation also lays down the additional information to be published by execution venue’s operating requests for quote systems, including the mean amount of time and medium amount of time elapsed between the acceptance of a quote and execution for relevant transactions. Execution venues must publish the required information in the format contained in the annexure to the adopted regulation within three months after the end of each quarter as outlined in the adopted Regulation.
The adopted Regulation must be approved by the European Parliament and the Council of the European Union and be published in the Official Journal before it can enter into force.
The adopted Regulation is available at: http://ec.europa.eu/transparency/regdoc/rep/3/2016/EN/3-2016-3333-EN-F1- 1.PDF and the Annex is available at: http://ec.europa.eu/transparency/regdoc/rep/3/2016/EN/3-2016-3333-EN-F1-1- ANNEX-1.PDF.