The Market Surveillance Market Review is available to
download from:
https://info.eventus.com/the-impact-of-mica-on-crypto-market-surveillance-insights-and-challenges
LONDON, June 27,
2024 /PRNewswire/ -- The European Union's Markets in
Crypto Assets Regulation (MiCA) is set to accelerate
ongoing investment in surveillance systems for
cryptocurrency trading, a report from Acuiti has
found.
The report, The Impact of MiCA on Crypto Market
Surveillance: Insights and Challenges, which was
commissioned by Eventus and based on a survey and series of
interviews with senior executives at 68 firms engaged in
crypto trade across the buy-side, sell-side and
exchanges, found that a move to establish market surveillance
systems is underway across the industry.
MiCA represents one of the first comprehensive regulatory
frameworks for crypto trading to be developed in a
major financial jurisdiction, and its adoption will increase
requirements for market participants in a range of areas.
The study found that, of the firms that were in scope for MiCA,
just 9% were fully prepared, and a quarter of firms had not begun
preparations. With MiCA coming into effect at the end of the year,
it is important that firms identify whether they are in scope now
and begin preparations to comply.
In terms of market surveillance, the MiCA regulation is based
upon requirements set out in the EU's Market Abuse Regulation
(MAR). For many firms, particularly crypto native
firms coming into scope for the first time, there will be a
significant operational lift to put in place the systems required
to be compliant. This study found that there were still high levels
of firms that were not sure if they were in scope.
The crypto market is already becoming more
sophisticated when it comes to market surveillance, the report
found with firms across the market, including 57% of those that
consider themselves not in scope for MiCA, already having market
surveillance systems in place.
With consultations still ongoing on the final technical
standards, one quarter of those in scope had not yet started
preparation. Just under a third were at an early stage of
preparation, while just over a third were at an advanced stage.
Firms investing in new systems were typically looking at
outsourcing to a third-party software vendor with 64% planning to
do so, although many firms anticipated challenges in finding the
right vendor for their needs.
Of all the challenges that MiCA posed to firms coming into
scope, the costs of compliance and finding skilled staff were the
key factors that firms anticipated would cause them issues.
"For firms that are not already operating under MIFID II, MiCA
will present a significant operational lift to become compliant,
and it is no surprise that we found that firms were looking to
third-party vendors to assist them in their preparations," says
Ross Lancaster Head of Research at
Acuiti.
"There is a relative lack of awareness among some areas in the
market as to who is in scope, which will need to be addressed if
firms are going to have time to get ready for compliance."
Eventus CEO Travis Schwab said:
"While there are commonalities in trade surveillance across asset
classes, digital assets can present some unique challenges. We
invested significantly beginning several years ago in ensuring we
could meet the needs of this sector, including the ability to
handle real-time alert generation covering billions of messages per
day, 24x7. Regulation in the EU is only the beginning of new
regulatory guidelines we expect to see in jurisdictions across the
globe in the coming years."
Download full report here:
https://info.eventus.com/the-impact-of-mica-on-crypto-market-surveillance-insights-and-challenges
About Acuiti
Acuiti is a management intelligence
platform designed to provide Senior Industry Professionals in the
Derivatives Industry with high-value insight into industry-wide
performance and business operations. Acuiti provides a platform
through which our exclusive network of Senior Industry Executives
can share and source information on day-to-day operational
challenges, providing them and their management teams with
increased transparency and in-depth analysis to make more informed
decisions and benchmark company performance. Financial Institutions
benefiting from our services include Banks, Non-bank FCMs, Brokers,
Proprietary Trading Firms, Hedge Funds and Asset Managers.
About Eventus
Eventus provides state-of-the-art,
at-scale trade surveillance software across all lines of defense.
Its powerful, award-winning Validus platform is easy to deploy,
customize and operate across equities, options, futures, foreign
exchange (FX), fixed income and digital asset markets. Validus is
proven in the most complex, high-volume and real-time environments
of Eventus' rapidly growing client base, including tier-1 banks,
broker-dealers, futures commission merchants (FCMs), proprietary
trading groups, market centers, buy-side institutions, energy and
commodity trading firms, and regulators. Clients rely on the
platform, coupled with the firm's responsive support and product
development, to overcome their most pressing trade surveillance
regulatory challenges. For more, visit www.eventus.com.
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SOURCE Eventus