Friday April 11 2025

News Source: Global Exchanges

Focus: Stock Exchange Regulation

Type: General

Country: European Union

Link: https://tinyurl.com/4vtrxwuu




On 10th April 2025, the European Securities and Markets Authority (ESMA) published the Final Report on the rules explaining how investment firms should establish their order execution policies and assess their effectiveness.

In the draft Regulatory Technical Standards (RTS) ESMA specifies the rules, with the objective to enhance investment firms’ order execution and foster investor protection.

The RTS includes requirements on:

  • the establishment of an investment firm’s order execution policy; this includes the classification of financial instruments in which firms execute client orders and the selection of venues for the order execution policy;
  • the investment firm’s procedures and criteria to monitor and regularly assess the effectiveness of its order execution arrangements and order execution policy;
  • the investment firm’s execution of client orders through own account dealing; and
  • how an investment firm should deal with specific client instructions.

Click on the above link for further information