The European Securities and Markets Authority has concluded a common supervisory action with national competent authorities on investment firms’ pre-trade controls under the Markets in Financial Instruments Directive II. The exercise found that while most firms have integrated pre-trade controls into trading activity and risk management, implementation and governance practices remain divergent and are not always robust. The common supervisory action was launched to gather more detailed insights into how investment firms across the European Union use pre-trade controls. ESMA will further analyse the results and publish guidance in the coming months, including clarifications and best practices, aimed at fostering more consistent approaches to the implementation and governance of pre-trade controls across EU firms.
European Securities and Markets Authority 2025-07-02
European Securities and Markets Authority concludes MiFID II supervisory action on pre-trade controls and plans guidance to harmonise practices
The European Securities and Markets Authority (ESMA) completed a supervisory action with national authorities on investment firms' pre-trade controls under the Markets in Financial Instruments Directive II. Findings revealed varied implementation and governance practices, despite widespread integration into trading and risk management. ESMA plans to publish guidance to promote consistent approaches across EU firms.