On September 10th, 2021, FINMA, for the first time, approves a stock exchange and a central securities repository for token trading

On September 10th, 2021, FINMA, for the first time, approves a stock exchange and a central securities repository for token trading

Sunday, 12 September, 2021

The distinguished Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. It encloses the supervision of: 

  • Banks
  • Insurance companies
  • Stock exchanges
  • Value traders, in addition to other financial intermediaries in Switzerland.

 

FINMA being a representative of Switzerland, a pioneer regarding innovations, recognizes the creative potential of emerging technology in the financial markets. 

To encourage genuine innovation, it consistently implements current financial market legislation requirements in a technology-neutral manner.

 

On September 10th, 2021, The Swiss Financial Market Supervisory Authority (FINMA) has granted two licenses to run financial market infrastructures based on what is known as Distributed Ledger Technology (DLT) 

 

As never seen before, this is a license for infrastructures that allow the trading of digital securities in the form of tokens, and their integrated settlement has been issued in the Swiss financial center. 

 

Thanks to these operating permits, SDX (Six Digital Exchange) can now provide the highest Swiss regulatory and supervisory requirements.

 

With the grant of these two licenses, a close organized value chain involving the issuance and custody of tokenized assets has been made possible. The SDX product is intended for monitored financial institutions.

 

Now, Six Digital Exchange has reached this breakthrough with the grant of the licenses, laying the foundation for the next stage in the development of a future ecosystem.

 

"Although the actual shape of the market is still changing, the digitalization of financial markets is a significant event in providing institutional investors with a stable and reliable infrastructure that fulfills all demands. DCV infrastructure and essential features of a conventional Stock Exchange ", according to Thomas Zeeb, a Global Head Exchanges and SIX Steering Committee member.

 

Sources:

https://finma.ch/en/news/2021/09/finma-issues-first-ever-approval-for-a-stock-exchange-and-a-central-securities-depository-for-the-trading-of-tokens/

 
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