Article 3 Prevention, monitoring and detection

1. cover the full range of trading activities undertaken by the persons professionally arranging or executing transactions in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology;;

2. produce alerts indicating activities requiring further analysis to detect potential market abuse;

3. enable crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; operating a trading platform to:

   1. analyse, individually and comparatively, each transaction executed, and each ordermeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. placed, modified, cancelled, or rejected in the systems of the trading platform;

   2. prevent the occurrence of repeated behaviours observed on the same trading platform;

4. enable persons professionally arranging or executing transactions in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; to analyse, individually and comparatively each transaction executed and each ordermeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. placed, modified, cancelled or rejected inside and outside a trading platform, irrespective of whether or not the ordersmeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. and transactions are placed and executed by means of the distributed ledgermeans an information repository that keeps records of transactions and that is shared across, and synchronised between, a set of DLT network nodes using a consensus mechanism;, and aspects of the functioning of DLT that could constitute market abuse.

Persons professionally arranging or executing transactions in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; shall put in place and maintain arrangements and procedures that ensure an appropriate level of human analysis in the prevention, monitoring, detection and identification of transactions, ordersmeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. and aspects of the functioning of the distributed ledger technologyor ‘DLT’ means a technology that enables the operation and use of distributed ledgers; that indicate the likelihood or existence of market abuse behaviours. Persons professionally arranging or executing transaction in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; shall collect additional personal datameans personal data as defined in Article 4, point (1), of Regulation (EU) 2016/679;, only for the sole purpose of ensuring appropriate level of human analysis.

For the purposes of Article 92(1) of Regulation (EU) 2023/1114, persons professionally arranging or executing transactions in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; shall, to a degree which is appropriate for, and proportionate in relation to, the scale, size, and nature of their business activity, employ ICT systems.

The ICT systems referred to in the first subparagraph shall include ICT systems capable of deferred automated reading, replaying and analysis of ordermeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. book data. Such systems shall have sufficient capacity to operate in an algorithmic trading environment.

For the purposes of the second subparagraph, algorithmic trading means trading in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; where a computer algorithm automatically determines individual parameters of ordersmeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type., including as to whether to initiate the ordermeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type., the timing, price or quantity of the ordermeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type., or how to manage the ordermeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. after its submission, with limited or no human intervention, and does not include any system that is only used for the purpose of routing ordersmeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. to one or more trading platform or for the processing of ordersmeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. involving no determination of any trading parameters or for the confirmation of ordersmeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type. or the post-trade processing of executed transactions.

1. retain the expertise and resources necessary to:

   1. evaluate the quality of the services provided and the organisational adequacy of the providers;

   2. supervise the outsourced services;

   3. manage of the risks associated with the outsourcing of those functions on an ongoing basis;

2. they shall have direct access to all the relevant information about the data analysis and the generation of alerts.

The written agreement referred to in the first subparagraph shall describe the rights and obligations of the person delegating or outsourcing the functions and those of the provider. It shall also set out the grounds on the basis of which the person delegating or outsourcing the functions can terminate that agreement.

As part of the arrangements, systems and procedures referred to in the first and second subparagraphs, persons professionally arranging or executing transactions in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; shall maintain the information documenting the analysis carried out with regard to ordersmeans each and every order, including each and every quote, irrespective of whether its purpose is initial submission, modification, update or cancellation of an order and irrespective of its type., transactions and aspects of the functioning of DLT that could constitute market abuse for a period of 5 years. That information shall include the analysis made and the reasons for submitting or not submitting a STOR. Persons professionally arranging or executing transactions in crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; shall provide that information to the competent authoritymeans one or more authorities:designated by each Member State in accordance with Article 93 concerning offerors, persons seeking admission to trading of crypto-assets other than asset-referenced tokens and e-money tokens, issuers of asset-referenced tokens, or crypto-asset service providers;designated by each Member State for the application of Directive 2009/110/EC concerning issuers of e-money tokens; upon request.