--- title: "ESMA Q&A 1055 — Q&A — Best Execution [Answer Published]" shortTitle: "ESMA Q&A 1055 — Q&A — Best Execution [Answer Published]" answer_id: ESMA_QA_1055 topic: "Best Execution" status: "Answer Published" type: qa instrument_type: qa authority: ESMA binding: false binding_character: non_binding legal_status: in_force regulation: "MiFID II" mifid_level3: true mica_level2: false legal_basis: "MiFID II" date: 10 July 2017 source_link: https://www.esma.europa.eu/publications-data/questions-answers/1055 lifecycle: "Answer Published" text_version: "ESMA Q&A register, 10 July 2017" source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1055" check_status: matched verified: true last_checked: 2026-10-26 checked_against: "the ESMA publication" source: prepared_by: "ESMA" published_by: "ESMA" published_in: "ESMA Q&A tool" evidence: prepared_by: "ESMA Answer" locator: "ESMA Q&A entry ESMA_QA_1055: field 'ESMA Answer', no 'Answer provided by' line" document_type: "qa_answer" legal_nature: "not_legislation" addressees: "not stated in the document" dates: published_on: "2017-07-10" question_submitted_on: "2017-07-10" locators: published_on: "ESMA Q&A Excel export ESMA_QA_1055, column 'Esma responses', date line" question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1055, column 'Date of submission'" lifecycle_label: "Answer Published" --- **Answer by ESMA, published in its Q&A tool · not legislation · published 10 Jul 2017 [Answer Published]** *Answer Published · ESMA Q&A register, 10 July 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1055)* | | | |---|---| | **Full title** | ESMA Q&A 1055 — Q&A — Best Execution \[Answer Published\] | | **Prepared by** | ESMA | | **Published by** | ESMA, in the ESMA Q&A tool | | **Reference** | ESMA_QA_1055 | | **Document type** | Q&A | | **Legal nature** | Not legislation | | **Addressees** | Not stated in the document | | **Dates** | Published 10 July 2017; question submitted 10 July 2017 | | **Legal basis** | MiFID II | | **Related instruments** | None recorded | | **Text on this page** | Word for word — the full text of the ESMA publication | **Best Execution** ### Question Do the RTS 27 reporting requirements apply to Securities Financing Transactions (SFTs)? *** ### Answer \[ESMA35-43-439 MiFID II Investor protection Best execution Q&A 15\] Article 1(5)(a) of MiFIR, subsequent to amending Regulation (EU) 2016/1033 of 23 June 2016, states that SFTs are not subject to the pre and post trade transparency obligations set out in Title II and III of MiFIR. While no specific exemption was included with respect to the RTS 27 best execution reporting obligations, Recital 10 of RTS 27 refers to the need for regulatory consistency between its requirements and those on post trade transparency. In this context, ESMA considers that the best execution reporting requirements set out in RTS 27 should not apply to SFTs. ESMA wishes to make clear that, irrespective of the above clarification concerning the application of RTS 27 to SFTs, the MiFID II best execution requirements otherwise apply to investment firms when carrying out SFTs. ESMA also wishes to clarify that while RTS 27 would not apply to SFTs, this would not lead to a complete absence of execution quality reports for SFTs, as RTS 28 explicitly requires investment firms to report, inter alia, on order routing behaviours specifically with respect to SFTs and to provide a summary on the quality of execution obtained. Investment firms should also note that RTS 28 already makes specific reference to how data concerning SFTs should be published. *** **Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1055)