ESMA finalises rules on firms’ order execution policies under MiFID II
ESMA published a final report detailing rules for investment firms' order execution policies to enhance investor protection. The report focuses on draft Regulatory Technical Standards (RTS) specifying these rules. The RTS covers the establishment of order execution policies, including classifying financial instruments and selecting execution venues. It also outlines procedures for monitoring and assessing the effectiveness of order execution arrangements. The rules address the execution of client orders through own account dealing. Specific guidelines are provided for handling particular client instructions. The final report has been submitted to the European Commission. ESMA may offer further advice and technical guidance if the EC requests it. More information on the MiFID II/MiFIR review is available online.