As new technologies such as AI and DLT transform the capital markets landscape, the World Federation of Exchanges (WFE) has called on regulators to hold new fintech entrants to the same standards as established players.
The fintech revolution is transforming the entire trading lifecycle, with machine learning, cloud computing and big data analytics among the technological innovations having a significant effect on the business of the 200 exchanges and post-trade infrastructure providers that make up the WFE.
In response, last year the organisation set up a fintech working group, which has now published its first position paper, outlining seven principles it wants regulators and other authorities to adhere to.
Among these is a call for there to be consistency in the application of rules to both incumbents and new fintech entrants, which the group says is “essential for maintaining the integrity, stability and fairness of the financial system”.
Elsewhere, the paper argues that existing regulations should be broadly sufficient to cover most fintech developments and that initiatives should be considered on a case-by-case basis. Meanwhile, the group calls for global coordination among authorities, an open dialogue between watchdogs and the industry, and a commitment to market-driven innovation.
Nandini Sukumar, CEO, The WFE, says: “As our seven principles show, the global nature of fintech demands a collaborative international approach, that allows innovation to flourish while safeguarding markets.”