The third edition of the REMIT Best Practice Report provides a full update  of the report with respect to the revised REMIT from April 2024, and adds a new section on monitoring requirements for Persons Professionally Executing Transactions (PPETs).

This comprehensive review of how to comply with REMIT, related to inside information and market abuse, is intended as a guide to best practice, helping market participants ensure they have implemented appropriate measures to comply with REMIT and thereby limit their risk of misconduct.

It describes options for market participants to develop and maintain an effective compliance regime, with particular regard to the requirements and prohibitions related to inside information and market abuse.

For the third edition of the REMIT Best Practice Report, we again sought input and knowledge-sharing from 18 market participants and our own experts on REMIT and market monitoring. Their combined experience and varying points of view gave invaluable perspective to help us produce a balanced and wide-reaching report establishing a common approach on REMIT compliance.

This edition includes

• an update to our recommendations on algorithmic trading to comply with Article 5a REMIT,
• a prior stand-alone section on erroneous orders, outlining a best practice approach for preventing and mitigating the risk of erroneous orders and for handling them should they occur, and
• a new section on monitoring requirements for PPETs to comply with the revised REMIT, with recommendations on how to set up a compliance regime, including arrangements, systems and procedures.

Our aim has been to create a report giving guidance to all types of market participants, with a presentation of the central points for consideration when building an entity-specific compliance manual. That said, only you can decide how best to assess the compliance risks your organisation faces and design a compliance regime accordingly. We hope this report may help.