The World Federation Of Exchanges Responds To IOSCO’s Consultation On Crypto-Asset Trading Platforms

Proshare

Tuesday, July 30, 2019 / 02:32PM / By WFE   / Header Image Credit: WFE

 

The World Federation of Exchanges ("WFE"), the global industry group for exchanges and CCPs, has responded to the International Organisation of Securities Commissions’ (IOSCO) Consultation Report on Issues, Risks and Regulatory Considerations Relating to Crypto-Asset Trading Platforms.

 

The consultation report highlights the current issues and risks that have been identified with the trading of crypto-assets on trading platforms (CTPs) such as transparency of operations, price discovery mechanisms, clearing and settlement, safekeeping of participants’ assets, identification and management of conflicts of interests.

 

It also identifies the fragmented approach across regulatory jurisdictions in the regulation of CTPs, due to differences between the emerging sets of rules that are being proposed and implemented by individual national authorities. The WFE supports IOSCO’s proposals to highlight the key considerations that national regulators should consider, and to provide toolkits that they could use when regulating CTPs.

 

In its response, the WFE recommends the establishment of a co-ordinated, widely understood and applied approach to the regulation of CTPs, under the guidance of IOSCO’s Objectives and Principles of Securities Regulation (IOSCO Principles) and hopes that international standard setters will continue to work together to produce a unified, global approach to the regulation of CTPs. This approach will likely benefit national regulators, consumers and the industry alike, as much needed certainty and clarity is introduced to the marketplace.

 

The WFE response also champions the importance of technological innovation, which underpins CTPs and can benefit competition-based growth and a healthy market. The WFE advises that this innovation should operate in a balanced, fair and regulated manner, with appropriate alignment to that applied to established market infrastructure, in order to avoid detrimental impacts on financial markets and investor interests. Further, the use of appropriate and internationally co-ordinated regulation of CTPs will avoid unintentionally impeding early stage technology, and will ensure the longer-term trust and protection of consumers.

 

Nandini Sukumar, Chief Executive Officer, WFE said: “The WFE welcomes IOSCO’s timely and well-developed consultation. Resilient, well-functioning markets balance sound regulation, clear investor protection mechanisms and common standards, in addition to fostering innovation. All of these factors are important if crypto-asset trading is to grow, to engender trust, to be able to protect investors, and to ensure the stability of the wider financial ecosystem. Regulated market infrastructures, who are developing crypto-asset trading within these standards will work to foster that ideal. At the WFE we are working with our members and stakeholders to develop those common standards.’’

 

You can read the full WFE response here.

 

Proshare Nigeria Pvt. Ltd.

 

 

Related News

1.       The WFE Issues Position Paper On Importance Of Valuing Stock Market Data Correctly – Jul 25, 2019

2.      Policy Challenges and Research Opportunities in the Era of Big Data

3.      Basel Committee, IOSCO Agree to 1-yr Extension of the Implementation Phase of the Margin Requirement – Jul 23, 2019

4.      Statement On IOSCO Liquidity Risk Management Recommendations For Investment Funds – Jul 18, 2019

5.      IOSCO Urges Authorities To Use Existing Standards To Address Cyber Risk – Jun 18, 2019

6.      CPMI and IOSCO Publish for Public Comment a Paper on CCP Auctions – Jun 06, 2019

7.      IOSCO Examines Market Fragmentation and Considers How to Enhance Cross-Border Co-operation – Jun 05, 2019

8.     CPMI-IOSCO Conclude That The United States Has Fully Implemented The PFMI for PSs, CSDs and SSSs – May 31, 2019

9.      IOSCO Annual Meeting In Sydney Takes Forward the IOSCO 2019 Workplan – May 30, 2019

10.  IOSCO Requests Feedback on Key Considerations for Regulating Crypto-asset Trading Platforms – May 28, 2019

11.   IOSCO Report on Behavioural Insights Seeks to Enhance Retail Investor Protection – Apr 02, 2019

12.  IOSCO Publishes First Annual Work Program To Enhance The Efficacy Of Its Work – Mar 25, 2019

13.  IOSCO Members Report Having Mostly Implemented Secondary Market Principles – Feb 12, 2019

14.  IOSCO Practices Aim To Create Robust Framework For Commodities’ Storage And Delivery – Feb 07, 2019

15.   IOSCO Examines Liquidity In Corporate Bond Markets Under Stressed Conditions

16.  Banking Sector Update - Reviewed SDF Guidelines: Clear Intent; Minor Impact

17.   CBN Delivers Another News On Standing Deposit Facility of Nigerian Banks

18.  CBN Issues Guidelines on Accessing Standing Deposit Facility; Effective Thursday July 11, 2019

19.  CBN Releases Modalities For The Implementation of The Creative Industry Financing Initiative

20. DMBs No Longer Require Prior Approval From CBN To Offer Mobile Money Wallet Services

21.  CBN’s New Minimum LDR Requirement May Worsen NPLs

22. CBN Mandates DMBs To Maintain Loan To Deposit Ratio Of 60% Effective Sept 30, 2019

23. CBN Directs MFBs To Implement Resolutions On The Revised National Financial Inclusion Strategy

24. SEC Nigeria Calls On Defunct Skye Bank Investors to Claim Dividends

25.  Competition and Consumer Protection Law - Legal Alert

26. SEC Reiterates Its Mandatory For CMOs To Have Managing Directors And Compliance Officers

27.  SEC Proposes New Rule On Share Transmission And Sundry Amendment To Rule on Annual Report

28. Why It Makes Business Sense To Move On From LIBOR - Andrew Hauser

29. Federal Reserve Board Releases Results Of Supervisory Bank Stress Tests

 


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

 

READ MORE:
Related News
SCROLL TO TOP