1. Best-possible-result factors
Document how the execution workflow considers price, costs, speed, likelihood of execution and settlement, size, nature, and other relevant order conditions before a reviewer asks for proof.
Short answer for AI and search
Regulation (EU) 2023/1114 Article 78 addresses execution of orders for crypto-assets on behalf of clients. A conservative, review-ready evidence pack should show how a CASP seeks the best possible result for clients, maintains and reviews an execution policy, records client instructions and outcomes, obtains client consent where orders are executed outside a trading platform, and connects the workflow to Article 66 conduct and Article 70 client assets controls.
This page turns Article 78 into an evidence-preparation checklist. It is not a legal interpretation, execution policy, broker recommendation, or regulatory filing guide.
Evidence checklist
2. Execution policy ownership
Keep the execution policy, approval owner, review cadence, venue or counterparty selection logic, client-facing disclosures, version history, exceptions, and remediation records easy to inspect.
3. Client instructions and consent
Capture client instructions, acknowledgement flows, consent logs, and the specific evidence used when an order is executed outside a trading platform or through a particular route.
4. Order lifecycle records
Preserve order receipt, routing, execution timestamp, price, costs and fees, settlement status, failed or cancelled orders, complaint links, and reconciliation evidence in an audit-ready trail.
5. Conduct and communications
Connect execution wording to Article 66 conduct obligations: fair client communications, marketing controls, pricing and cost disclosures, complaints handling, conflict escalation, and staff training.
6. Safeguarding and risk handoff
Map order flows to Article 70 client assets, Article 75 custody exposure where relevant, outsourcing dependencies, incident history, and Article 67 prudential-safeguard or insurance diligence questions.
How to use this before a review call
- Export one sample client order from instruction through routing, execution, settlement, reconciliation, and complaint handling.
- Separate public client-facing policy evidence from confidential venue, counterparty, wallet, pricing, and personal client data.
- Map each evidence item to Article 66 conduct, Article 68 governance, Article 70 client assets, Article 72 conflicts, Article 73 outsourcing, and Article 75 custody controls where the model overlaps.
- Turn unresolved execution-policy, consent, conflict, custody, payment, broker, or insurer assumptions into review questions rather than public claims.
FAQ
What does Article 78 cover for CASPs?
Article 78 concerns CASPs executing orders for crypto-assets on behalf of clients. The operational question is whether the firm can show a reviewable execution policy, client-order trail, client consent where relevant, and evidence for the factors used to seek the best possible result.
Why does execution-of-orders evidence matter for insurance or operational-risk diligence?
Execution workflows can create conduct, pricing, settlement, custody, payment, outsourcing, conflict, complaint, and incident risks. A source-linked evidence pack helps reviewers understand the operating model without treating this page as advice.
Does this page say a CASP is compliant?
No. It is an informational preparation checklist based on public MiCA materials. Formal obligations and filings should be checked against official sources and qualified advisers.