The U.K. Financial Conduct Authority (FCA) has recently published their final guidance in a bid to elucidate the regulatory perimeter for trading venues and the necessary regulatory approvals required for them to operate their business. This focus on clarifying the regulatory landscape follows the rise of new platforms that are continuously emerging due to technological advancements. More details here.
The guidance serves as an upshot from the Wholesale Markets Review conducted by Her Majesty’s Treasury. Alongside this, other aspects of the review are being carried out through the advent of the Financial Services and Markets Act 2023 or via certain amendments to FCA rules.
Operating on the fringes of burgeoning tech-driven markets, this guidance offers a much-needed vision of what is expected from an infrastructural point of view, providing businesses with a clearer idea about the rules of engagement in evolving market conditions.
Given the dynamic state of trading venues as a result of ongoing technological progress, governing bodies globally will have to redefine their regulatory perimeters to foster innovation while ensuring fairness and transparency. This development from the U.K.’s FCA offers a noteworthy model to consider in these ongoing international efforts.