The Financial Conduct Authority and the Bank of England have opened applications for their Digital Securities Sandbox (DSS).
In a statement released today (30 September), the FCA and the Bank urged firms that are innovating in financial market infrastructure to apply.
They said the DSS will “reshape” how they regulate by allowing firms to test legislative changes in real-world scenarios before the changes are implemented.
DSS gives firms the opportunity to explore new technologies in traditional financial markets.
The new tech includes distributed ledger technology (DLT), a system for storing and managing information distributed across participants in a network.
It has the potential to improve efficiency and reduce costs in wholesale markets, benefitting industry and investors.
“We believe the DSS could also lead to a quicker, more effective and collaborative way of delivering regulatory change,” the statement said.
“The DSS supports innovation, helps protect financial stability and strengthens the UK’s leading position as a global and vibrant financial centre, built on globally respected high standards.”
The authorities said there is a range of support available to firms to help them through the application process.
Firms can arrange pre-application meetings to better understand the DSS requirements.
The DSS is open to legally established firms of all sizes and at all stages of development.
The firms could be an existing financial institution that is already authorised or recognised under current regulation or a new entrant to the market.
Find out more about the support available here.
Hmmm…. I would proffer… both should return to the origin and start to think about the inductry ourside the sandbox… wonder whole stole AB’s plastic castle?… sniff…