A lack of clarity and worth has led to confusion surrounding RTS 27.
Within Europe, the past few years have seen a tightening of Regulation, with the aim to protect retail traders from losses. However, amid this tightening, some aspects of the regulation have caused confusion for brokers, such as RTS 27.
To explain it simply, RTS 27 is a quarterly requirement for execution venues, Market Makers and Systematic Internalisers (SIs) to publish best execution reports, however, it is a common mistake for firms to think RTS 27 is the same as Best Execution.
As explained by TRAction: “Though they are related and often ‘packaged’ together, they are not the same. Best Execution deals with rules and processes to achieve a good outcome for clients. RTS 27 is disclosing publicly on your website a report on execution statistics.”
RTS 27 wasn’t designed for CFD brokers
One of the reasons why contracts for difference (CFD) brokers might be confused with the regulations could be because the regulation was not designed for CFD providers, it was actually designed for trading venues.
As highlighted by the provider of trade and transaction regulatory reporting services, recent guidance from ESMA on RTS 27 effectively means that although CFD providers that offer services with little affinity to trading venues, still need to collect, collate and report on information they don’t have access to and from a perspective from which they don’t operate.
So what is it specifically about RTS 27 that is causing confusion for brokers? Speaking to Finance Magnates Quinn Perrott, the co-CEO of TRAction Fintech believes it is the lack of clarity surrounding the regulation.
"RTS 27 incorporates a lot of terms and concepts which don't feel directly applicable to FX and CFD brokers. Any regulation which requires a lot of interpretation to make it fit with real-life circumstances of an investment firm causes a lot of grief until more guidance is issued or an industry norm is developed," he said.
Do RTS 27 reports provide value?
Ron Finberg, Product Specialist, Regulation at Cappitech, however, doesn't believe the regulation is overly difficult for brokers to understand. He did, however, point out that the actual value the information generated from the quarterly reports is questionable.
"I don’t think its that difficult to understand what the regulators want," he told Finance Magnates. "The problem I see with it is not a matter of whether it's difficult to understand what they want but whether the data itself provides a use. And regardless of whether it’s a CFD provider or a market maker... the data itself is very difficult to get any benefit from."
In light of the coronavirus pandemic, ESMA has allowed execution venues that are unable to publish RTS 27 reports due by the 31st of March 2020 to publish them as soon as reasonably practicable after that date as long as it is before the following reporting deadline.
Within Europe, the past few years have seen a tightening of Regulation, with the aim to protect retail traders from losses. However, amid this tightening, some aspects of the regulation have caused confusion for brokers, such as RTS 27.
To explain it simply, RTS 27 is a quarterly requirement for execution venues, Market Makers and Systematic Internalisers (SIs) to publish best execution reports, however, it is a common mistake for firms to think RTS 27 is the same as Best Execution.
As explained by TRAction: “Though they are related and often ‘packaged’ together, they are not the same. Best Execution deals with rules and processes to achieve a good outcome for clients. RTS 27 is disclosing publicly on your website a report on execution statistics.”
RTS 27 wasn’t designed for CFD brokers
One of the reasons why contracts for difference (CFD) brokers might be confused with the regulations could be because the regulation was not designed for CFD providers, it was actually designed for trading venues.
As highlighted by the provider of trade and transaction regulatory reporting services, recent guidance from ESMA on RTS 27 effectively means that although CFD providers that offer services with little affinity to trading venues, still need to collect, collate and report on information they don’t have access to and from a perspective from which they don’t operate.
So what is it specifically about RTS 27 that is causing confusion for brokers? Speaking to Finance Magnates Quinn Perrott, the co-CEO of TRAction Fintech believes it is the lack of clarity surrounding the regulation.
"RTS 27 incorporates a lot of terms and concepts which don't feel directly applicable to FX and CFD brokers. Any regulation which requires a lot of interpretation to make it fit with real-life circumstances of an investment firm causes a lot of grief until more guidance is issued or an industry norm is developed," he said.
Do RTS 27 reports provide value?
Ron Finberg, Product Specialist, Regulation at Cappitech, however, doesn't believe the regulation is overly difficult for brokers to understand. He did, however, point out that the actual value the information generated from the quarterly reports is questionable.
"I don’t think its that difficult to understand what the regulators want," he told Finance Magnates. "The problem I see with it is not a matter of whether it's difficult to understand what they want but whether the data itself provides a use. And regardless of whether it’s a CFD provider or a market maker... the data itself is very difficult to get any benefit from."
In light of the coronavirus pandemic, ESMA has allowed execution venues that are unable to publish RTS 27 reports due by the 31st of March 2020 to publish them as soon as reasonably practicable after that date as long as it is before the following reporting deadline.
Gender Gap in Online Privacy Concerns: Women More Reserved in Sharing Personal Data
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
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Don't miss out on our latest videos, interviews, and event coverage.
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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