ESMA Clarifies Position on Call Taping During COVID-19 Outbreak
- ESMA reminds firms of the MiFID II requirements on the recording of telephone conversations
The European Securities and Market Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) has issued a public statement to clarify its position regarding call taping under MiFID II.
The statement addresses issues regarding the applications by firms around the MiFID II requirements on the recording of telephone conversations.
ESMA reminds companies of the MiFID II requirements in this area.
Considering the exceptional circumstances created by the COVID-19 outbreak, some scenarios may emerge, where the recording of relevant conversations required by MiFID II may not be practicable, according to ESMA.
If firms, under these exceptional scenarios, are unable to record voice communications, ESMA expects them to consider what alternative steps could be taken to mitigate the risks related to the lack of recording. This applies especially when market participants are reactivating their disaster recovery (DR) sites and or asking staff to work from home.
“Firms are expected to deploy all possible efforts to ensure that the above measures remain temporary and that recording of telephone conversations is restored as soon as possible,” ESMA said in its clarification.
In coordination with national authorities, ESMA continues to monitor developments in financial markets, including the application of relevant EU requirements by market participants, as a result of the COVID-19 situation and is prepared to use its powers to ensure financial stability, orderly functioning of EU markets and investor protection.
Black Swan Black Swan A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in Read this Term event
Sources in the market that want to remain unnamed commented: “While DR sites should have full phone recording in place, whereas, let’s be honest, these have never been tested under real circumstances before and all more or less require some upgrading. And when working from home it’s tough to tape mobile phones, whereas our company is currently exploring ways to switch to internet backed telephone lines for the working from home scenario, which can easier be recorded and hence will be in compliance with MiFID II again. ESMA has done a great job here applying certain levels of flexibility in this Black Swan event.”
The European Securities and Market Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) has issued a public statement to clarify its position regarding call taping under MiFID II.
The statement addresses issues regarding the applications by firms around the MiFID II requirements on the recording of telephone conversations.
ESMA reminds companies of the MiFID II requirements in this area.
Considering the exceptional circumstances created by the COVID-19 outbreak, some scenarios may emerge, where the recording of relevant conversations required by MiFID II may not be practicable, according to ESMA.
If firms, under these exceptional scenarios, are unable to record voice communications, ESMA expects them to consider what alternative steps could be taken to mitigate the risks related to the lack of recording. This applies especially when market participants are reactivating their disaster recovery (DR) sites and or asking staff to work from home.
“Firms are expected to deploy all possible efforts to ensure that the above measures remain temporary and that recording of telephone conversations is restored as soon as possible,” ESMA said in its clarification.
In coordination with national authorities, ESMA continues to monitor developments in financial markets, including the application of relevant EU requirements by market participants, as a result of the COVID-19 situation and is prepared to use its powers to ensure financial stability, orderly functioning of EU markets and investor protection.
Black Swan Black Swan A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in Read this Term event
Sources in the market that want to remain unnamed commented: “While DR sites should have full phone recording in place, whereas, let’s be honest, these have never been tested under real circumstances before and all more or less require some upgrading. And when working from home it’s tough to tape mobile phones, whereas our company is currently exploring ways to switch to internet backed telephone lines for the working from home scenario, which can easier be recorded and hence will be in compliance with MiFID II again. ESMA has done a great job here applying certain levels of flexibility in this Black Swan event.”