MiFID II › Level 3 › Q&A › ESMA
ESMA Q&A 2655 — Q&A — Derivatives settled [Forwarded to EC/Public Consultation/Other]
Financial servicesLevel 3Q&AMiFID IIStage: ForwardedOfficial source
Derivatives settled in stablecoins
Question
Can derivatives settled in stablecoins—namely asset-referenced tokens or electronic money tokens as defined in Article 3(6) and (7) of Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) - be classified as financial instruments under Section C of Annex I to Directive 2014/65/EU? More specifically, can such instruments be deemed to meet the criterion of derivatives settled in cash?
In addition, does EU legislation permit the use of unauthorised stablecoins – namely asset-referenced tokens and electronic money tokens that do not comply with Titles III and IV of MiCA – for the settlement of derivatives?
Source: ESMA original document