EC Adopts Delegated Regulation Setting RTS for MiFID II Order Execution Policy
Summary
The European Commission adopted a Delegated Regulation setting Regulatory Technical Standards (RTS) for MiFID II order execution policies based on ESMA's April 2025 final draft. The RTS address execution venue selection, policy monitoring, order routing, client instructions, periodic assessment, and instrument classification. The regulation repeals Delegated Regulations (EU) 2017/575 and 2017/576. It enters into force the 20th day after Official Journal publication and applies 18 months thereafter.
“The Delegated Regulation will enter into force on the 20th day following its publication in the Official Journal of the European Union.”
What changed
The European Commission adopted a Delegated Regulation supplementing Directive 2014/65/EU (MiFID II) with Regulatory Technical Standards on order execution policy. The RTS, based on ESMA's April 2025 final draft, specify criteria for investment firms when establishing and assessing order execution policies, covering execution venue selection, policy monitoring, order routing, client instruction handling, periodic assessment, and instrument classification. The regulation repeals Delegated Regulations (EU) 2017/575 and 2017/576, enters into force 20 days after Official Journal publication, and applies 18 months thereafter.
Investment firms subject to MiFID II will need to update their order execution policies, procedures, and systems to comply with the new RTS requirements within the 18-month implementation window. Firms should review the specific criteria outlined in the regulation for execution venue selection, monitoring, and periodic assessment obligations.
Archived snapshot
Apr 20, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
April 20, 2026
EC adopts Delegated Regulation setting RTS on order execution policy
The European Commission has adopted a Delegated Regulation supplementing Directive 2014/65/EU (MiFID II), with regard to regulatory technical standards (RTS) specifying the criteria to be taken into account by investment firms when establishing and assessing the effectiveness of their order execution policies. The Delegated Regulation is based on ESMA's final draft RTS published in April 2025. The RTS specify rules on, among other things: (i) selecting execution venues; (ii) monitoring investment firms' execution policies; (iii) order routing; (iv) the handling of specific client instructions and related investor protection safeguards; (v) the periodic assessment of investment firms' order execution policies; and (vi) how to identify classes and subclasses of financial instruments for which the investment firms execute orders on behalf of clients.
When the Delegated Regulation enters into force, it will repeal Delegated Regulation (EU) 2017/575 which sets out data to be published by execution venues on the quality of execution of transactions on their venues and Delegated Regulation (EU) 2017/576, which sets out obligations for investment firms to publish information on the identity of execution venues and the quality of execution obtained. The Delegated Regulation will enter into force on the 20th day following its publication in the Official Journal of the European Union. It will apply 18 months after entry into force, allowing firms time to update their order execution policies, procedures and systems.
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