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Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2019-05-29","question_submitted_on":"2019-05-29","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1066, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1066, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1066","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1066-best-execution.md","body_sha256":"7c074a34f717f5dfb4cba4b4e6f4e1d658e741ea4a8070a3a0eab52bdf0dd0b5"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1066 — Q&A — Best Execution [Answer Published]\"\nshortTitle: \"ESMA Q&A 1066 — Q&A — Best Execution [Answer Published]\"\nanswer_id: ESMA_QA_1066\ntopic: \"Best Execution\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"MiFID II\"\ndate: 29 May 2019\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1066\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 29 May 2019\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1066\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1066: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2019-05-29\"\n  question_submitted_on: \"2019-05-29\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1066, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1066, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 29 May 2019 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 29 May 2019 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1066)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1066 — Q&A — Best Execution \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1066 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 29 May 2019; question submitted 29 May 2019 |\n| **Legal basis** | MiFID II |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Best Execution**\n\n### Question\n\nDoes the categorisation of ‘passive’ and ‘aggressive’ orders apply to investment firms which use quote-driven trading systems to have client orders executed?\n\n***\n\n### Answer\n\n\\[ESMA35-43-349 Investor protection Best execution Q&A 23\\]\n\nThe definitions of Article 2(a) and (b) of RTS 28 for aggressive and passive orders both refer to “orders entered into an order book”. However, quote-driven trading systems do not operate order books (see also the typology and descriptions set out in Annex I of RTS 2). Therefore, as part of their RTS 28 reporting, investment firms which use quote-driven trading systems to have client orders executed should insert a ‘N/A’ (i.e. ‘not applicable’) reference in the fields referring to passive and aggressive orders of the relevant reporting template.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1066)\n"}