[ESMA35-43-439 MiFIDII Investor protection Best execution 11]

Where portfolio managers or receivers and transmitters send orders for execution to different brokers or entities within a common legal or corporate group, ESMA is of the view that, in line with Article 65(6) of the Delegated Regulation, the annual report on the top five entities chosen for execution should be provided at the level of the individual firm and not be aggregated or consolidated at the group level.

Where an investment firm’s top five entities listed in the annual report are dominated by individual brokers or entities from a single group, thereby potentially displacing other third party brokers or entities that it uses on a regular basis, then, in these circumstances, the investment firm could consider providing additional information on these other third-party brokers or entities chosen for execution that is deems relevant to its order execution practices, so as to provide a complete picture of the various entities it selects for execution services (in line with Recital 15 of RTS 28).