Source: OJ L, 2024/1506, 30.5.2024

Article 3 Indicators for assessing interconnectedness with the financial system

Summary What does Article 3 of the Criteria for significance classification say?

This article sets out how the EBA is to assess the "interconnectedness" criterion under Article 43(1)(f) of MiCA (Regulation (EU) 2023/1114), which is one of the criteria used to classify an asset-referenced token or e-money token as significant.

The article establishes a two-tier framework: a set of core indicators the EBA must always assess, and a set of ancillary indicators the EBA falls back on only when the core indicators do not yield a conclusive determination.

The core indicators focus on how deeply a token's reserve assets are tied to the broader financial system, while the ancillary indicators dig into the issuer's ownership structure, the concentration of reserve assets across financial institutions, and the degree to which reserve assets overlap with those of other token issuers.

For each indicator, the article provides specific mathematical formulas to ensure consistent calculation.

Important points:

The EBA is required to assess core indicators measuring the extent to which reserve assets of asset-referenced tokens and e-money tokens consist of financial instruments issued by financial institutions, and the issuer's holdings relative to the total supply of those instruments.
The EBA is required to apply ancillary indicators — covering ownership structure, asset concentration, and portfolio overlap — only where the core indicators do not produce a conclusive result on interconnectedness.
All calculations are performed by reference to the last calendar day of the relevant period, using the prescribed formulas set out in this article.

Springlex's summary of the article, a reading aid, not a substitute for the legal text.

1. When assessing whether the criterion set out in Article 43(1), point (f), of Regulation (EU) 2023/1114 is fulfilled, the EBA shall assess all of the following core indicators:
  1. the significance of the share of non-deposit reserve assets of an asset-referenced token or an e-money token that are financial instruments issued by financial institutions;
  2. the significance of the share of the issuer’s asset holdings relative to the total supply of specific financial instruments.

For the purposes of paragraph 1, point (a), the EBA shall consider the following sub-indicators:
1. the share of non-deposit reserve assets of an asset-referenced token or an e-money token that are financial instruments issued by financial institutions;
2. in case of asset-referenced tokens, share of non-deposit reserve assets of an asset-referenced token that are derivatives; or
3. in case of e-money tokens, share of non-deposit reserve assets of an e-money token that are covered bonds.

The EBA shall calculate the sub-indicator referred to in the first subparagraph, point (a), in respect of the last calendar day of the relevant period in accordance with the following formula:

the total value of financial instruments issued by financial institutions that are part of the reserve of assets of the asset-referenced token or e-money token

(the total value of the reserve of assets of the asset-referenced token or e-money token)-(the total value of deposits in the reserve of assets of the asset-referenced token or e-money token)

The EBA shall calculate the sub-indicator referred to in the first subparagraph, point (b), in respect of the last calendar day of the relevant period in accordance with the following formula:

the total value of derivatives that are part of the reserve of assets of the asset-referenced token

(the total value of the reserve of assets of the asset-referenced token)-(the total value of deposits in the reserve of assets of the asset-referenced token)

The EBA shall calculate the sub-indicator referred to in the first subparagraph, point (c), in respect of the last calendar day of the relevant period in accordance with the following formula:

the total value of covered bonds issued by credit institutions that are part of the reserve of assets of the e-money token

(the total value of the reserve of assets of the e-money token)-(the total value of deposits in the reserve of assets of the e-money token)

1. The EBA shall calculate the share of the issuer’s asset holdings referred to in paragraph 1, point (b), in respect of the last calendar day of the relevant period in accordance with the following formula:
  the total value of holdings of the issuer of an asset-referenced token or an e-money token of a type of a financial instrument
  the total supply of that type of the financial instrument
1. Where the assessment of the core indicators referred to in paragraph 1 does not lead to a conclusive determination with regard to the interconnectedness criterion set out in of Article 43(1), point (f), of Regulation (EU) 2023/1114, the EBA shall assess all of the following ancillary indicators:
  1. the ownership structure of the issuer of an asset-referenced token or an e-money token;
  2. the degree of concentration of the reserve assets of the issuer of an asset-referenced token or an e-money token in financial institutions;
  3. the degree of portfolio overlap of reserve assets of the issuer of an asset-referenced token or an e-money token with the reserve assets of other issuers of asset-referenced tokens and e-money tokens.
1. For the purposes of paragraph 4, point (a), the EBA shall consider all of the following:
  1. whether the issuer has a dispersed or concentrated ownership structure;
  2. whether a natural or legal person with a qualifying holding is a financial institution;
  3. the complexity of the ownership structure.
1. For the purposes of paragraph 4, point (b), the EBA shall consider all of the following sub-indicators:
  1. the concentration of the reserve assets of the issuer of an asset-referenced token or an e-money token in financial institutions;
  2. the concentration of deposits held in credit institutions by the issuer of an asset-referenced token or an e-money token.
2. The EBA shall calculate the sub-indicator referred to in the first subparagraph, point (a), in respect of the last calendar day of the relevant period in accordance with the following formula:
3. Concentration = s₁²+s₂²+s₃²+…s_n²
4. where s_n = the share of reserve assets held in financial institutions n (expressed as a whole number).
5. The EBA shall calculate the sub-indicator referred to in the first subparagraph, point (b), in respect of the last calendar day of the relevant period in accordance with the following formula:
6. Concentration = c₁²+c₂²+c₃²+…c_n²
7. where c_n = the share of deposits held in credit institutions n (expressed as a whole number).

The EBA shall calculate the ancillary indicator referred to in paragraph 4, point (c), in respect of the last calendar day of the relevant period in accordance with the following formula:

the total value of the reserve assets ofan asset-referenced token or an e-money token that are also held in the reserve of assets of other issuers of asset-referenced tokens or e-money tokens

the total value of the reserve assets of the asset-referenced token or an e-money token

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