The World Federation of Exchanges (WFE) has published the first position paper from its newly formed FinTech Working Group (FTWG). The paper: "FinTech in the Market Infrastructure Space", identifies seven principles necessary to "allow innovation to flourish while safeguarding markets".
The WFE, which represents over 200 market infrastructure providers including exchanges and CCPs, stressed the need for a collaborative approach to help develop comprehensive and coherent industry policy positions, and shape regulatory thinking in the FinTech space.
The seven principles are:
- Innovation should generally be market driven
- The scope of existing regulations should be broadly sufficient
- Any regulatory approach should encourage innovation whilst ensuring investor protection and system stability
- The implications of outsourcing
- Regular and open dialogue between regulators and the markets
- Co-ordination of regulatory thinking at global level
- Consistency in the application of rules to both incumbents and new FinTech entrants
The full FinTech Position paper is available here.