--- title: "ESMA Q&A 1056 — Q&A — Best Execution [Answer Published]" shortTitle: "ESMA Q&A 1056 — Q&A — Best Execution [Answer Published]" answer_id: ESMA_QA_1056 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: 3 October 2017 source_link: https://www.esma.europa.eu/publications-data/questions-answers/1056 lifecycle: "Answer Published" text_version: "ESMA Q&A register, 3 October 2017" source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1056" 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_1056: 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: "2017-10-03" question_submitted_on: "2017-10-03" locators: published_on: "ESMA Q&A Excel export ESMA_QA_1056, column 'Esma responses', date line" question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1056, column 'Date of submission'" lifecycle_label: "Answer Published" --- **Answer by ESMA, published in its Q&A tool · not legislation · published 3 Oct 2017 [Answer Published]** *Answer Published · ESMA Q&A register, 3 October 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1056)* | | | |---|---| | **Full title** | ESMA Q&A 1056 — Q&A — Best Execution \[Answer Published\] | | **Prepared by** | ESMA | | **Published by** | ESMA, in the ESMA Q&A tool | | **Reference** | ESMA_QA_1056 | | **Document type** | Q&A | | **Legal nature** | Not legislation | | **Addressees** | Not stated in the document | | **Dates** | Published 3 October 2017; question submitted 3 October 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 How do the OTF best execution obligations apply when third-party brokers are clients of the OTF or when these brokers provide Direct Electronic Access (DEA) to the OTF (see Article 4(1)(41) of MiFID II)? *** ### Answer \[ESMA35-43-349 MiFID II Investor protection Best execution Q&A 16\] When an investment firm or a market operator operating an OTF receives orders or indications of interest from a broker acting on behalf of its own clients, the operator of the OTF should be implementing its own best execution policy when executing the order from the broker as it owes its user clients (the broker) the duty of best execution. The broker should determine that the OTF it selects allows it to comply with its best execution obligations towards its own clients. To that end, the broker should conduct a performance assessment of the OTF including how discretion is exercised. In the specific case of DEA to an OTF, the DEA order is entered in the OTF client’s name (the broker) and the OTF operator should execute the DEA order as it would for any OTF client order. Alternatively, the operator of the OTF may decide not to permit DEA to its system. ESMA notes that a DEA order could be considered as a client specific instruction to the broker providing the DEA arrangements to its clients (see Q.16). *** **Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1056)