Andrea Salsi’s Post

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets

On 8 January 2024, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. The government has also published an Explanatory Memorandum which sets out the background and purpose of the Regulations. #Securities #FinancialMarkets

On 8 January 2024, the Financial Services and Markets Act (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. Read our summary of the regulations here. #FinancialServices #Securities #CapitalMarkets #Digital #Regulation

On 8 January 2024, the Financial Services and Markets Act (Digital Securities Sandbox) Regulations 2023 entered into force, creating the Digital Securities Sandbox within which certain Financial Market Infrastructures will be able to test the use of developing technologies subject to a modified legislative framework. Read our summary of the regulations here. #FinancialServices #Securities #CapitalMarkets #Digital #Regulation

See below our article on the UK’s Digital Securities Sandbox for financial market infrastructures.

✅ UK’s Digital Securities Sandbox regulations in force today Last month we looked at The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023, which come into force today. But what do we know so far about how the sandbox will operate? 👩💻 Who will operate and supervise it? The Bank of England and the Financial Conduct Authority (FCA). 🙋♀️ Who can apply to join? The DSS will allow firms to test the use of new technologies (e.g. distributed ledger technology, or technology that facilitates ‘digital assets’) across financial markets – specifically, to perform the activities of a central securities depository, and operating a trading venue. Any person determined by the regulators and established in the UK should be able to apply, in addition to specific types of Financial Market Infrastructure (FMI) entity that are also eligible. Entities should only apply if the modified legislation clearly benefits their proposed business model. 📝 Application process The regulators will create and operate a joint application process for the DSS. Following an application, the regulators should give reasons if an application to the DSS is accepted but with variations to the application sought or rejected. Any conditions will be set out via a Sandbox Approval Notice (SAN). The SAN will act as a ‘visa’ detailing the permitted activities being performed and the restrictions in place, including what limits have been allocated to that entity.  The regulators will have powers that are unique to the DSS. These include powers of direction and a general power to modify, suspend or cancel a SAN where necessary. The DSS will last up to five years from the date that the regulations are made, with the possibility of extension by HM Treasury. 👋 Exiting the DSS Participating entities will exit the DSS in one of two ways: 1️⃣ continuing to operate but under a permanently amended UK legislative framework; or  2️⃣ by winding down their activities in the DSS, which may include transitioning FMI sandbox instruments outside of the DSS. ➡ Next steps: Expect to hear more from the FCA and Bank of England on application logistics. 2024 is going to be a year of momentum. What are your predictions?