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  1. Questions and Answers on MiFID II and MiFIR investor protection and intermediaries topics (ESMA35-43-349) (updated 15 December 2023)
  2. 1 Best execution [Last update: 3 October 2019]
  3. Question 17 Disclosure of quality of execution when using direct electronic access [Last update: 3 October 2017]
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Version date: 3 October 2017 - onwards

Question 17 Disclosure of quality of execution when using direct electronic access [Last update: 3 October 2017]

Art. 27 of MiFID II RTS 28

Should an investment firm using direct electronic access (DEA) services provided by an intermediary firm (such as a broker) list the execution venue selected via the DEA arrangement (under the RTS 28 reporting obligation), or the broker providing the DEA service (under the report to be published under Article 65(6) of the Delegated Regulation)?

Answer 17

Article 4(1)(41) of MiFID II defines DEA as arrangements where a member or participant or client of a trading venue permits a person to use its trading code. ESMA considers that the provider of DEA is the firm executing orders. As such, an investment firm using DEA services to specifically direct an order to a particular venue would be expected to list the intermediary firm providing that service for the purposes of the report to be published under Article 65(6) of the Delegated Regulation (which is consistent with the RTS 28 report). In these instances, the investment firm would be considered as giving a s

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