RTS 27 Reporting refers to specific regulatory technical standards mandated by the European Union’s Markets in Financial Instruments Directive II (MiFID II). These standards compel trading venues and systemic internalizers to publish detailed, standardized data on the quality of their trade execution.
Mechanism
This mechanism requires financial firms to compile and publicly disclose quarterly reports containing quantitative data on various execution parameters, including executed price, associated costs, likelihood of order execution, and speed of transaction processing. The reporting is disaggregated by instrument type and order size, providing granular transparency.
Methodology
Compliance with RTS 27 necessitates implementing robust data aggregation, analytical, and reporting systems to meet strict regulatory specifications. While originating in traditional European markets, the principles of execution quality transparency are increasingly pertinent in crypto. Institutional participants and RFQ crypto platforms seek similar metrics to evaluate trade execution efficiency and ensure best execution practices across diverse, often fragmented, digital asset trading venues.
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