The European Securities and Markets Authority (ESMA) has relaxed video communication monitoring requirements under MiFID II during the COVID-19 (coronavirus) pandemic.
The regulator has stated that there may be certain scenarios which emerge during the coronavirus outbreak which means a firm may be unable to record conversations which compliance with MiFID II requires. It has said if this situation occurs, ESMA expects the firm to consider any alternative steps they could take instead to mitigate risks related to a lack of recording.
Firms will be expected to deploy all possible efforts to ensure the measures are only temporary and they can return to recording telephone conversations as soon as possible.
The regulator is continuing to monitor the coronavirus incident and may implement further measures to protect firms and the financial market.
ESMA and its other European regulators have been hard at work making adjustments to regulations to mitigate problems caused by the pandemic.
Last week, ESMA issued a temporary requirement on net short positions in traded shares as it seek additional measures to secure financial market in COVID-19 pandemic.
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