ESMA Finalises Rules on Investment Firms’ Order Execution Policies under MiFID II
Frankfurt, 29 April 2025 – LPA Lucht Probst Associates
The European Securities and Markets Authority (ESMA) has published its Final Report on new Regulatory Technical Standards (RTS) outlining how investment firms must establish and assess the effectiveness of their order execution policies under MiFID II. The initiative aims to enhance order execution quality and reinforce investor protection across EU financial markets.
The newly finalised RTS set out detailed requirements for:
- The development of an investment firm’s order execution policy, including the classification of financial instruments and the selection of execution venues;
- Procedures and criteria for regularly monitoring and assessing the effectiveness of order execution arrangements;
- Execution of client orders through proprietary trading;
- Handling of specific client instructions in the context of order execution.
The publication follows a comprehensive consultation process launched by ESMA in July 2024. A total of 43 responses were received from market participants, significantly informing the finalisation of the technical standards.
The Final Report has now been submitted to the European Commission for adoption. Under Article 10 of Regulation (EU) No 1095/2010, the Commission is expected to decide on the adoption of the standards within three months.
LPA Lucht Probst Associates welcomes the new RTS as an important step towards a harmonised and transparent framework for order execution across European financial markets. The standards offer legal clarity for investment firms and strengthen long-term investor confidence.
Further information and access to the full ESMA report can be found here:
