Art. 87 Inside information | MiCA regulation | MiCA

This article defines "inside information" for the purposes of MiCA, establishing the foundational concept that underpins the market abuse provisions in Title VI.

It sets out two categories: non-public, price-sensitive information relating to crypto-assets generally, and, specifically for those executing client orders, information about a client's pending orders.

The article then carefully unpacks what makes information "precise" — covering both existing and reasonably expected circumstances or events — and notably extends this to intermediate steps within longer processes, meaning that even progress toward an outcome can qualify as inside information.

The standard for price sensitivity is anchored to what a reasonable crypto-asset holder would use in making investment decisions.

Important points:

Inside information covers non-public, precise information that would likely have a significant effect on crypto-asset prices if made public.
For persons executing orders on behalf of clients, client information about pending orders also constitutes inside information.
Even intermediate steps in a longer process can qualify as inside information if they individually meet the criteria of being precise and price-sensitive.

1. For the purposes of this Regulation, inside information shall comprise the following types of information:
  1. information of a precise nature, which has not been made public, relating, directly or indirectly, to one or more issuers, offerors or persons seeking admission to trading, or to one or more crypto-assets, and which, if it were made public, would likely have a significant effect on the prices of those crypto-assets or on the price of a related crypto-asset;
  2. for persons charged with the execution of orders for crypto-assets on behalf of clients, it also means information of a precise nature conveyed by a client and relating to the client’s pending orders in crypto-assets, relating, directly or indirectly, to one or more issuers, offerors or persons seeking admission to trading or to one or more crypto-assets, and which, if it were made public, would likely have a significant effect on the prices of those crypto-assets or on the price of a related crypto-asset.
1. For the purposes of paragraph 1, information shall be deemed to be of a precise nature if it indicates a set of circumstances which exists or which may reasonably be expected to come into existence, or an event which has occurred or which may reasonably be expected to occur, where it is specific enough to enable a conclusion to be drawn as to the possible effect of that set of circumstances or event on the prices of crypto-assets. In that respect, in the case of a protracted process that is intended to bring about, or that results in, particular circumstances or a particular event, those future circumstances or that future event, and also the intermediate steps of that process which are connected with bringing about or resulting in those future circumstances or that future event, may be deemed to be precise information.
1. An intermediate step in a protracted process shall be deemed to be inside information if, in and of itself, it satisfies the criteria of inside information referred to in paragraph 2.
1. For the purposes of paragraph 1, information which, if it were made public, would likely have a significant effect on the prices of crypto-assets shall mean information that a reasonable holder of crypto-assets would likely use as part of the basis of the holder’s investment decisions.

Article 87 Inside information

Relevant recitals