We have raised the topic of MiFiDII and ESMA directives several times after they were implemented in early 2018. Today most regulated brokers are engaging with their respective licensing and regulatory agencies to provide the necessary data to satisfy the requirements set out for reports such as RTS27 and 28.
Yet, while these requirements are often seen as tedious and even difficult due to the large amount of resources required to satisfy regulators in this specific regard, the positive impacts of these processes have been previously underreported. Considering the recent developments from our colleagues at Advanced Markets and partners Tradefora, the new reporting processes have actually given both traders and brokers a new way to look at the concept of ‘best execution’ and transparency and improve their respective trading conditions.
As indicated by Advanced Markets, the RTS27/28 reporting provides brokers with valuable information that can help identify areas for improvement and even increased revenue capture, while traders can look forward to more transparency in the prices they receive during trading. Moreover, the exposure of traders to concepts of ‘best execution’ helps to educate them on the processes involved in providing pricing and liquidity and shapes their understanding of the most important thing – the cost of trading.
Our partners, Tradefora have just launched a new real-time system for both reporting and highlighting transparency to traders. Indeed, Tradefora’s RTS 27 solution comes fully loaded with built-in features, providing much more than basic regulatory reporting.
Check out Advanced Markets CRO, Natallia Hunik’s interview with and Andrews Saks-Mcleod on this very topic: