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Article 27 — Obligation to execute orders on terms most favourable to the client — compare

Showing 13 of 13Release 2 Nov 2026Details
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MiFID II: every English consolidation from 23 Mar 2023. Older wording is not held and is not replaced by any other text. Not covered: national guidance, court decisions.
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Release c89ff15e published 2 Nov 2026, 05:02 CET. This article checked word for word against EUR-Lex on 26 Oct 2026.
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Showing 13 of 13
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From
23 March 2023 · Consolidated version of 23 March 2023 · Checked against EUR-Lex on 26 Oct 2026 · Official source
To
2 November 2026 · Consolidated version of 28 March 2024 · Checked against EUR-Lex on 1 Nov 2026 · Official source
27(1)

1.Member States shall require that investment firms take all sufficient steps to obtain, when executing orders, the best possible result for their clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order. Nevertheless, where there is a specific instruction from the client the investment firm shall execute the order following the specific instruction.

Where an investment firm executes an order on behalf of a retail client, the best possible result shall be determined in terms of the total consideration, representing the price of the financial instrument and the costs relating to execution, which shall include all expenses incurred by the client which are directly relating to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.

For the purposes of delivering best possible result in accordance with the first subparagraph where there is more than one competing venue to execute an order for a financial instrument, in order to assess and compare the results for the client that would be achieved by executing the order on each of the execution venues listed in the investment firm’s order execution policy that is capable of executing that order, the investment firm’s own commissions and the costs for executing the order on each of the eligible execution venues shall be taken into account in that assessment.

27(2)

2.An investment firm shall not receive any remuneration, discount or non-monetary benefit for routing client orders to a particular trading venue or execution venue which would infringe the requirements on conflicts of interest or inducements set out in paragraph 1 of this Article and Article 16(3) and Articles 23 and 24. [in_force → deleted]

27(3)

3.Member States shall require that forWith regard to financial instruments that are subject to the trading obligation obligations laid down in Articles  23 and  28 of Regulation (EU) No  600/2014 each trading venue and systematic internaliser and for other financial instruments each execution venue makes available to the public, without any charges, data relating toMember States shall require that, following the quality of execution of transactions on that venue on at least an annual basis and that following execution of a transactionorder on behalf of a client, an the investment firm shall inform the client of the venue where the order was executed. Periodic reports shall include details about price, costs, speed and likelihood of execution for individual financial instruments.

The periodic reporting requirement to the public laid down in this paragraph shall not apply until 28 February 2023. The Commission shall comprehensively review the adequacy of the reporting requirements laid down in this paragraph and submit a report to the European Parliament and the Council by 28 February 2022.

27(4)

4.Member States shall require investment firms to establish and implement effective arrangements for complying with paragraph 1. In particular, Member States shall require investment firms to establish and implement an order execution policy to allow them to obtain, for their client orders, the best possible result in accordance with paragraph 1.

27(5)

5.The order execution policy shall include, in respect of each class of financial instruments, information on the different venues where the investment firm executes its client orders and the factors affecting the choice of execution venue. It shall at least include those venues that enable the investment firm to obtain on a consistent basis the best possible result for the execution of client orders.

Member States shall require that investment firms provide appropriate information to their clients on their order execution policy. That information shall explain clearly, in sufficient detail and in a way that can be easily understood by clients, how orders will be executed by the investment firm for the client. Member States shall require that investment firms obtain the prior consent of their clients to the order execution policy.

Member States shall require that, where the order execution policy provides for the possibility that client orders may be executed outside a trading venue, the investment firm shall, in particular, inform its clients about that possibility. Member States shall require that investment firms obtain the prior express consent of their clients before proceeding to execute their orders outside a trading venue. Investment firms may obtain such consent either in the form of a general agreement or in respect of individual transactions.

27(6)

6.Member States shall require investment firms who execute client orders to summarise and make public on an annual basis, for each class of financial instruments, the top five execution venues in terms of trading volumes where they executed client orders in the preceding year and information on the quality of execution obtained. [in_force → deleted]

The Commission shall comprehensively review the adequacy of the periodic reporting requirements laid down in this paragraph and submit a report to the European Parliament and the Council by 28 February 2022.

27(7)

7.Member States shall require investment firms whowhich execute client orders to monitor the effectiveness of their order execution arrangements and execution policy in order to identify for the purpose of identifying and, where appropriate, correctcorrecting any deficiencies. In particular, they Member States shall require such investment firms to assess, on a regular basis, whether the execution venues included in the order execution policy provide for the best possible result for the client or whether they need to make changes to their execution arrangements, taking account of, inter alia, the information published under paragraphs 3 and 6. Member States shall require investment firms to notify clients with whom they have an ongoing client relationship of any material changes to their order execution arrangements or execution policy.

27(8)

8.Member States shall require investment firms to be able to demonstrate to their clients, at their request, that they have executed their orders in accordance with the investment firm’s execution policy and to demonstrate to the competent authority, at its request, their compliance with this Article.

27(9)

9.The Commission shall be empowered to adopt delegated acts in accordance with Article 89 concerning:

27(9)(a)
(a)the criteria for determining the relative importance of the different factors that, pursuant to paragraph 1, may be taken into account for determining the best possible result taking into account the size and type of order and the retail or professional nature of the client;
27(9)(b)
(b)factors that may be taken into account by an investment firm when reviewing its execution arrangements and the circumstances under which changes to such arrangements may be appropriate. In particular, the factors for determining which venues enable investment firms to obtain on a consistent basis the best possible result for executing the client orders;
27(9)(c)
(c)the nature and extent of the information to be provided to clients on their execution policies, pursuant to paragraph 5.
27(10)

10.ESMA shall develop draft regulatory technical standards to determine:specify the criteria to be taken into account in establishing and assessing the effectiveness of the order execution policy pursuant to paragraphs 5 and 7, taking into account whether the orders are executed on behalf of retail or professional clients.

ESMA shall submit those draft regulatory technical standards toThose criteria shall include at least the Commission by 3 July 2015.following:

27(10)(a)
(a)the specific content, the format and the periodicity of data relating tofactors determining the qualitychoice of execution to be publishedvenues included in accordance with paragraph 3, taking into account the type oforder execution venue and the type of financial instrument concernedpolicy;
27(10)(b)
(b)the content and the formatfrequency of information to be published by investment firms in accordance with paragraph 6.assessing and updating the order execution policy;
27(10)(c)
(c)the manner in which to identify classes of financial instruments as referred to in paragraph 5.

Power is delegated to the Commission to adopt theESMA shall submit those draft regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010Commission by 29 December 2024.

Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.