THE WORLD FEDERATION OF EXCHANGES RESPONDS TO IOSCO’S CONSULTATION ON CRYPTO-ASSET TRADING PLATFORMS

Hamilton, Bermuda – 30 July, 2019:  THE WORLD FEDERATION OF EXCHANGES RESPONDS TO IOSCO’S CONSULTATION ON CRYPTO-ASSET TRADING PLATFORMS, the full filing stated the following;

PRESS RELEASE

THE WORLD FEDERATION OF EXCHANGES RESPONDS TO IOSCO’S CONSULTATION ON CRYPTO-ASSET TRADING PLATFORMS

London, Tuesday 30 July 2019 – 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.

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About the World Federation of Exchanges (WFE):

Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents over 200 market infrastructure providers, including standalone CCPs that are not part of exchange groups. Of our members, 37% are in Asia-Pacific, 43% in EMEA and 20% in the Americas. WFE exchanges are home to nearly 48,000 listed companies, and the market capitalisation of these entities is over $70.2 trillion; around $95 trillion (EOB) in trading annually passes through the infrastructures WFE members safeguard (at end 2018).

The WFE is the definitive source for exchange-traded statistics, and publishes over 350 market data indicators.  Its free statistics database stretches back more than 40 years, and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system.  

With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policy makers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system.

For more information, please contact:

Anna Watson

Head of Communications, The World Federation of Exchanges 

Email:     awatson@world-exchanges.org

Phone:   +44 20 7151 4137 / 7850 287 685

Twitter:   @TheWFE

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For more information on the Bermuda Stock Exchange (BSX), contact Nancy Vieira at 1-441-292-7212 or info@bsx.com. Information is also available at bsx.com and on Bloomberg at BSX <GO> the BSX was founded in 1971 and is the world’s leading fully electronic offshore securities market. The BSX list equities, mutual funds and bonds, depository receipts and derivative warrant securities. The BSX is a full member of the World Federation of Exchanges (WFE) and an affiliate member of IOSCO. In addition, the BSX is recognized by the U.S. Securities & Exchange Commission (SEC) as a Designated Offshore Securities Market under Regulation S; The Financial Services Authority in the UK as a Designated Investment Exchange; HM Revenue & Customs in the UK as a Recognized Stock Exchange; The Bermuda Monetary Authority as a Recognised Investment Exchange and as an Approved Stock Exchange under Australia’s Foreign Investment Funds (FIF) taxation rules.