ESMA_QA_2415
Topic
Recording of telephone conversations and electronic communications
27/01/2025
Subject Matter
Scope of the obligation to document face-to-face conversations with clients
Question
Should face-to-face conversations with clients be recorded if the client order is placed in a written form or contract signed during the meeting? 
Level 1 Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries
ESMA_QA_2414
Topic
Crypto-Asset Service Provider (CASP)
25/01/2025
Subject Matter
MiCAR CASP - Best Possible Outcome for the Client
Question
There is a practice in the crypto-asset industry when dealing with client orders which involves the following scenario:
i) a crypto-asset service provider (CASP) providing the service of execution of orders (CASP-broker) receives client orders;
ii) this CASP-broker systematically executes the orders received on behalf of the clients with another entity of the group as counterparty (the “group entity B”) instead of executing such orders on the group’s trading platform for crypto-assets;
iii) group entity B then immediately places an offsetting order to hedge its exposure on the group’s trading platform for crypto-assets.
In this scenario, the price offered to the client by group entity B (through the CASP-broker) is in excess of the top of book price achievable on the order book of the trading platform for crypto-assets to reflect a "guaranteed price" offered to the customer for a limited period, for example 30 - 60 seconds. Group entity B then enters an order on the group’s trading platform on the same side as the customer order would have been had it been executed directly on the group’s trading platform.
However, the price is not really guaranteed: if during the execution of group entity B’s order on the group’s trading platform, the price moves in favour of the client order, group entity B trades at that more favourable price but fills the client’s order at the agreed “guaranteed price”. But, if during the execution of group entity B’s order, the price moves against the client order, the client’s order will be filled by group entity B only if the price movement doesn't exceed the spread applied by group entity B when quoting the “guaranteed price”. Otherwise the order of the client will be cancelled.
In such scenarios, the client pays:
(i) to the CASP-broker: a fully disclosed commission for the “execution of their order”, and
(ii) to group entity B: a spread which is priced in to the “guaranteed price” quoted by group entity B.
Is this scenario compliant with MiCA?
Level 1 Regulation
MiCA
ESMA_QA_2404
Topic
Stablecoin
17/01/2025
Subject Matter
Scope of public offering
Question
Regarding ARTs or EMTs under MiCAR, what services provided in or into the EU constitute an offering to the public, a seeking admission to trading or a placing of an ART or EMT?
Level 1 Regulation
MiCA
ESMA_QA_2399
Topic
Digital operational resilience testing
14/01/2025
Subject Matter
Finalised Comprehensive List of DORA questions
Question
Is there a finalised comprehensive list of all questions that the firms involved in the financial markets should answer? For each question is it clear to which type of firm it applies?
Level 1 Regulation
Regulation (EU) 2022/2554 - The Digital Operational Resilience Act (DORA)
ESMA_QA_2397
Topic
Crypto-Asset Service Provider (CASP)
10/01/2025
Subject Matter
Registered AIFM and MICA
Question
Does article 60 paragraph 5 MICA apply to registered (sometimes referred to as sub-threshold) Alternative Investment Fund Managers referred to in Article 3(2) AIFMD (Directive 2011/61/EU) ?
Level 1 Regulation
MiCA