You are viewing CRYPTOPRU 4.8 K-factor requirement for cryptoasset trading flow (K-CTF) as it appeared on 25/10/2027. The current version of CRYPTOPRU 4.8 K-factor requirement for cryptoasset trading flow (K-CTF) was last updated on 25/10/2027.

CRYPTOPRU 4.8 K-factor requirement for cryptoasset trading flow (K-CTF)

25/10/2027R

The K-CTF requirement of a CRYPTOPRU firm is equal to 0.1% of average CTF.

25/10/2027G

The definition of CTF includes cryptoasset orders that a firm enters in its own name.

Interaction between orders in a firm’s own name in CRYPTOPRU and MIFIDPRU

25/10/2027G

A firm may handle transactions involving both qualifying cryptoassets and financial instruments. In this case, it may be subject to both CRYPTOPRU and MIFIDPRU, and may be required to calculate a K-CTF requirement under this section (K-CTF) in respect of the qualifying cryptoasset, and a K-DTF requirement under MIFIDPRU 4.15 (K-DTF) for the financial instrument. Its total K-factor requirement will be the sum of all applicable parts of the K-factor requirement in those sourcebooks (COREPRU 4.4.1R).

Calculating CTF

25/10/2027R

A firm must calculate its K-CTF requirement:

  1. (1) on the first business day on which CRYPTOPRU applies to the firm; and
  2. (2) thereafter, on the first business day of each month.
25/10/2027R

A firm must calculate the amount of its average CTF by:

  1. (1) taking the total CTF as measured throughout each business day in each of the previous 9 months;
  2. (2) excluding the daily values for the most recent 3 months; and
  3. (3) calculating the arithmetic mean of the daily values for the remaining 6 months.
25/10/2027R
  1. (1) When measuring its CTF, a firm must use the sum of the absolute value of each buy order and sell order.
  2. (2) The value in (1) is the amount paid or received on the order.
25/10/2027G

When measuring CTF for the purposes of CRYPTOPRU 4.8.5R, a firm must include transactions executed by a firm in its own name either for itself or on behalf of a client.

Firms with less than 9 months of data on CTF

25/10/2027R

Where a firm has had cryptoasset orders for less than 9 months, it must calculate its average CTF under CRYPTOPRU 4.8.5R as follows:

  1. (1) During the first month in which it has had cryptoasset orders, the firm must:
    1. (a) make a best-efforts estimate of expected CTF for that month; and
    2. (b) use that estimate as its average CTF.
  2. (2) During the subsequent 8 months, the firm’s average CTF must be calculated in accordance with CRYPTOPRU 4.11.1R(2).
Point In Time
25/10/2027