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ESMA issues supervisory guidelines to prevent market abuse under MiCA 29 April 2025 Digital Finance and Innovation Market Abuse Supervisory convergence The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today guidelines on supervisory practices to prevent and detect market abuse under the Market in Crypto Assets Regulation (MiCA). Based on ESMA's experience under Market Abuse Regulation (MAR), the guidelines intended for National Competent Authorities (NCAs) include general principles for effective supervision and specific practices for detecting and preventing market abuse in crypto assets. They consider the unique features of crypto trading, such as its cross-border nature and the intensive use of social media. The guidelines set out general principles requiring supervisory activity to be risk-based and proportionate, and set the objective for NCAs to build a common supervisory culture specific for crypto assets through an open dialogue with the industry and interactions with other NCAs. The guidelines aim to support consistent and efficient supervisory practices among NCAs, ensuring a common supervisory culture for crypto assets. Next steps The Guidelines will be translated into all EU languages and published on ESMA’s website and will start applying three months after that date. However, ESMA recommends that NCAs already start implementing the principles included in the guidelines whilst waiting for the translations. Within two months of the date of publication of the Guidelines on ESMA’s website in all EU official languages, competent authorities to which these guidelines apply must notify ESMA whether they (i) comply, (ii) do not comply, but intend to comply, or (iii) do not comply and do not intend to comply with the guidelines.   Further information: Cristina Bonillo Senior Communications Officerpress@esma.europa.eu 29/04/2025 ESMA75-453128700-1408 Final Report on the Guidelines on supervisory practices for competent authorities to prevent and detect market abuse under MiCA

The European Banking Authority (EBA) today published new draft Regulatory Technical Standards (RTS) that define when crypto-asset service providers (CASPs) have to appoint a central contact point. A central contact point can be an important tool in the fight against financial crime.

The European Banking Authority (EBA) today released an ESG dashboard that establishes a broader ESG risks monitoring framework and allows centralised access to comparable climate risk indicators. This dashboard provides benchmarks and enhances the assessment and monitoring of transition and physical climate-related risk across the EU/EEA banking sector. It is based on the information disclosed by banks as part of their Pillar 3 ESG disclosures.

ESMA assesses the risks posed by the use of leverage in the fund sector 24 April 2025 Fund Management Risk monitoring The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today publishes its annual risk assessment of leveraged alternative investment funds (AIFs) and its first analysis on risks in UCITS using the absolute Value-at-Risk (VaR) approach. Both articles represent ESMA’s work to identify highly leveraged funds in the EU investment sector and assess their potential systemic relevance. While most EU investment funds make limited use of leverage, a subset of AIFs are substantially leveraged, and a group UCITS using the absolute VaR approach has very high levels of gross leverage. Risk assessment of leveraged AIFs shows that hedge funds display the highest levels of leverage, even though they represent a small part of the EU fund industry. The real estate (RE) funds are under pressure in some jurisdictions due to the combination of declining real estate prices and outflows from some funds, but in general the RE fund sector has been resilient at EU level. The assessment of GBP Liability-Driven Investment (LDI) funds, which gain leveraged exposures to the UK government bond market, shows that imposing limits to the interest rate risk they can take successfully increased the resilience of the sector, and even resulted in a decline of leverage for some funds. In a new analysis, ESMA reports that UCITS using the absolute VaR approach to manage their risk profile account for around 8% of the UCITS universe. These funds follow a heterogeneous range of investment strategies and can increase their exposures using derivatives. Withing this group, a subset of funds shows risk profiles and characteristics more commonly associated with hedge funds, such as complex derivative exposures with high levels of gross leverage and heightened sensitivity to market conditions. These funds tend to be exposed to risks related to liquidity imbalances and complexity, and some have higher risks than hedge funds. While this subset is small (2% of the UCITS segment), they have a larger volume of assets than EU hedge funds.  The diversity of strategies and relatively fragmented manager base in the VaR UCITS segment reflects a dynamic market but also underscores the importance of close supervisory attention to ensure risks are properly understood and managed.   Further information: Aleksandra Bojanić Senior Communications Officerpress@esma.europa.eu 24/04/2025 ESMA50-524821-3642 TRV Article: Annual risk assessment of leveraged AIFs in the EU – 2024 24/04/2025 ESMA50-524821-3660 TRV Article: Risks in UCITS using the absolute Value-at-Risk approach

New Q&As available 11 April 2025 Digital Finance and Innovation The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has published or updated the following Questions and Answers: European crowdfunding service providers for business (ECSPR): Bulletin Board - Disclosure obligations (point (b) of Article 25(3) of the ECSPR) (2501) Assessment of the entity to be considered as the project owner (2502) Markets in Crypto-Assets Regulation (MiCA) Registered AIFM and MICA (2397) Autotrading (2463) ▸ Questions and Answers section

ESMA publishes implementing rules on Liquidity Management Tools for funds 15 April 2025 Fund Management Guidelines and Technical standards The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is publishing today the draft Regulatory Technical Standards (RTS) and a final report on the Guidelines (GL) on Liquidity Management Tools (LMTs).   These provisions will make EU fund managers better equipped to manage the liquidity of funds, in particular in case of market stress. In addition, the draft RTS will also clarify the functioning of LMTs, such as the use of side pockets for which rules currently vary significantly across the EU. Through their role in mitigating financial stability risks, these rules are an important contribution to the ongoing debate on Non-Bank Financial Intermediation.  This publication is a key step in the implementation of the revised AIFMD and UCITS Directive and will facilitate the harmonisation and full availability of the LMTs defined in the Directives in all Member States.  Next steps  The draft RTS have been submitted to the European Commission (EC) for adoption. From the date of submission, the EC shall take a decision on whether to adopt the RTS within three months. The EC may extend that period by one month.  ESMA will translate the GL after the adoption of the draft RTS by the EC. Should the EC amend the draft RTS in a way that impact the GL, ESMA will adjust the GL to ensure full consistency between the RTS and the GL. Upon publication of the translations on the ESMA website, national competent authorities will have two months to notify ESMA whether they comply or intend to comply with the GL.  The GL will start applying on the date of entry into force of the RTS. Funds existing before the entry into force the RTS will have twelve months to comply with the GL.    Further information:  Dan Nacu-Manole Communications Officer press@esma.europa.eu 15/04/2025 ESMA34-1985693317-1160 Final Report on the Guidelines on LMTs of UCITS and open-ended AIFs 15/04/2025 ESMA34-1985693317-1259 Final Report on the Draft Regulatory Technical Standards on Liquidity Management Tools under the AIFMD and UCITS Directive