# FIX Trading Community releases Recommended Practices for Commission Unbundling as required by MiFID II Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-11-16 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: FIX Trading Community Releases MiFID II Commission Meta Description: Find definitive guidelines for unbundling commissions into their component parts under MiFID II regulations, with a focus on research identification. URL: https://financedigest.com/fix-trading-community-releases-recommended-practices-for-commission-unbundling-as-required-by-mifid-iihtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd161117-6-1736843253585-compressed.jpg) _**Providing definitive guidelines to assist firms with unbundling prior to January 2018**_ [FIX Trading Community](http://fixtradingcommunity.us7.list-manage.com/track/click?u=b60b4511982ff286c66d564e5&id=6ace7eae89&e=8b7a9d7f7b), the non-profit, industry-driven standards body at the heart of global financial trading, today releases Recommended Practices for Commission Unbundling as required by MiFID II. MiFID II has introduced the requirement to explicitly separate commissions into their component parts (e.g. execution, research) with a focus on the specific identification of the research component of the commission. In addition, MiFID II has [introduced the concept of a research-payment account](https://www.financedigest.com/twitter-to-introduce-official-label-for-some-verified-accounts.html "Twitter to introduce ‘Official’ label for some verified accounts") (RPA).  Previously, commission payments were generally [handled in the background by Commission Sharing](https://www.financedigest.com/outside-door-handle-market-analysis-trends-top-manufacturers-share-growth-statistics-opportunities-and-forecast-to-2027.html "Outside Door Handle Market Analysis, Trends, Top Manufacturers, Share, Growth, Statistics, Opportunities and Forecast to 2027") Agreements (CSA). Over the past two years, FIX members have debated and discussed the [European Securities and Markets](https://www.financedigest.com/white-bullets-collaboration-with-polands-sygnal-association-makes-a-significant-dent-in-ad-funded-piracy-in-this-key-european-market.html "White Bullet’s collaboration with Poland’s Sygnał Association makes a significant dent in ad-funded piracy in this key European market") Authority (ESMA) terminology and responded to updates across a number of different MiFID Working Groups. The FIX MiFID Commission Unbundling Working Group, in conjunction with the FIX Global [Post Trade](https://www.financedigest.com/euro-zone-posts-record-trade-deficit-in-august-amid-soaring-energy-prices.html "Euro zone posts record trade deficit in August amid soaring energy prices") Working Group, has worked on producing a document that provides guidelines for pre-trade and post-trade representation of commission components for all asset classes, using the FIX Protocol. _**Dave Tolman, Principal Services Analyst, Itiviti, Co-chair FIX Global**_ [Post Trade Working Group, noted, “The FIX Global Post Trade Working Group has worked for a number of years to facilitate industry-wide implementation of post-trade processing via FIX between buy-side and sell-side firms](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer"). This is a [natural progression](https://www.financedigest.com/geometric-progression-to-be-the-epicenter-of-natural-and-organic-flavors-market.html "Geometric Progression To Be The Epicenter Of Natural And Organic Flavors Market") to address the MiFID II requirements that will affect many global firms.” _**Rebecca Healey, Head of EMEA [Market Structure](https://www.financedigest.com/solar-panel-mounting-structures-market-expectations-growth-trends-highlighted-until-2031.html "Solar Panel Mounting Structures Market Expectations & Growth Trends Highlighted Until 2031") and Strategy, Liquidnet, Co-Chair FIX EMEA Regulatory Subcommittee,**_ commented, “It was important to have consensus across membership, as FIX has done across all MiFID Working Groups, with commission unbundling. With the assistance of the buy-side, sell-side and [vendors we have been able to produce these specific guidelines to help the market](https://www.financedigest.com/low-calorie-toast-market-insights-deep-analysis-of-key-vendor-in-the-industry-2022-2031.html "Low-calorie Toast Market Insights, Deep Analysis of Key Vendor in the Industry 2022-2031") address this requirement.” _**David [Pearson, Head of Post-trade,](https://www.financedigest.com/global-growth-headed-down-as-inflation-surge-to-endure.html "Global growth headed down as inflation surge to endure")**_ _**Fidessa, Co-chair FIX Global Post Trade Working Group, said, “**_ After a detailed analysis of the regulations, and extensive industry consultation, the FIX Working Group recognised that the current guidelines and message specification needed to be enhanced to allow the post-trade process to handle multiple commissions on the allocation instruction and confirmation messages. This [document provides important](https://www.financedigest.com/how-to-save-money-on-important-documents.html "How to Save Money on Important Documents") guidelines to assist firms ahead of the January 2018 deadline.” The Recommended Practices document can be found [here](https://www.fixtrading.org/packages/fix-mifid-commission-unbundling-recommended-practices/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---