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Tech Tuesday is a weekly series that covers all aspects of capital market technology. TECH Tuesday was developed in collaboration with Nasdaq.
Just as the modernization of traditional securities markets has been of great benefit to market participants, so can digital assets – as long as the regulation goes hand in hand with development.
Speaking at the Nasdaq Future Conference in New York on June 28, Commodity Future Trading Commission Commissioner Caroline de Fam said.
“All of Nasdaq’s e-markets – and the e-commerce of electronics from stocks, FXs, rates, fixed revenues and more – have created more transparency, more accessibility, more competition, more cost-effectiveness, more liquidity,” said Fam. All have benefits and other promises. But we need to take precautions to avoid the traps. ”
“The digital assets market is unique, but the broader market rules and market principles are the same.”
For its part, the CFTC, which controls commodities and controls exchanges, cleaning houses, merchants and other market participants, has a regulatory framework for many digital assets. Fam described the framework as “relatively property and technology-independent.”
“Our focus on principle-based regulation, customer protection, market integrity, risk management, pricing and transparency has worked well for our markets for decades,” she said.
FAM said in particular that market infrastructure providers, such as exchanges, sanitation and central security storage (CSD) operators, have their own manuals, procedures, and experience with implementation and enforcement supervisors. “Principles and codes of conduct and the conduct of highly controlled businesses for decades are good tools for any new asset class or technology to be used and utilized,” she says.
The CFTC Commissioner outlined ten basic principles for responsible digital asset markets, including identifying their products or services; Ensure that the product or service is within the control parameters; Reducing system risk; Protecting customers and retail investors; And increase transparency.
For the next steps, he said, FA regulators should gather all the necessary information, learn as much as possible and then come up with practical solutions. These solutions should include control over borders and territories, as well as ‘proof of the future’, such laws as technology changes and market evolution.
“We have to act. Wheels work on the moon, ”says Fam. “In the 1990’s, Nasdaq’s future technology ‘built the stock market for the next 100 years.’ Today, with our future regulation – and some harassment by CFC – we can build the global financial markets for the next 100 years or more.
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