-Data analysis that can show brokers deficiency in their processes: price discovery, execution and other criteria that will help them deliver the best possible execution to the client
-Transparency and disclosure show investors the way their trades are being handled and make them more informed and educated. Investors will now be able to make educated choices of the broker as opposed to just buying into marketing messages
On the flip side, implementation challenges continue on:
– No standardized format of the reports make them very difficult to interpret. Some brokers put the very minimum information which may confuse and mislead investors
-Brokers view RTS27/28 as a massive data exercise and as a burden rather than the benefit instead of trying to use the data to help the business
-Brokers are unwilling to disclose counterparties and wont want this data to become available. Over 50% do not publish any data at all, many publish with required fields empty. Regulator lacks enforcement and automatic data validation
-Many brokers are putting RTS27/28 reports at the very bottom of their website to make it less discoverable by investors and certainly do not use it to inform investors prior to account opening.
Watch this comprehensive interview with Natallia to learn more about issues at hand and challenges ahead! Adios