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---
title: "ESMA Q&A 1066 — Q&A — Best Execution [Answer Published]"
shortTitle: "ESMA Q&A 1066 — Q&A — Best Execution [Answer Published]"
answer_id: ESMA_QA_1066
topic: "Best Execution"
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**Answer by ESMA, published in its Q&A tool · not legislation · published 29 May 2019 [Answer Published]**

*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)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1066 — Q&A — Best Execution \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1066 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 29 May 2019; question submitted 29 May 2019 |
| **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

Does the categorisation of ‘passive’ and ‘aggressive’ orders apply to investment firms which use quote-driven trading systems to have client orders executed?

***

### Answer

\[ESMA35-43-349 Investor protection Best execution Q&A 23\]

The 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.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1066)