GDF Board Response to IOSCO Neo-Broker Consultation Report
The GDF Board responded to the IOSCO Consultation Report on Neo-Brokers.
We appreciate IOSCO’s focus on the evolving nature of online trading platforms and submit the following response to the eight questions posed, reflecting the experience and perspective of our members operating in the digital ecosystem. As such our response focuses on how the evolving approach to neo-brokers would apply to neo-brokers dealing with crypto or digital assets. Our overarching feedback is as follows:
1. Greater consideration of how a framework or principles for neo-brokers would converge with existing principles and framework for crypto and digital assets;
2. Consideration that many of the differences of neo-brokers, and or those falling in the crypto and digital asset space offer opportunities to enhance market access, transparency, and operational efficiency;
3. Consideration of the activities unique to crypto asset markets such as staking and yield-bearing products;
4. Development of risk-based categorisation of platforms and services, allowing for more calibrated regulatory engagement that encourages responsible innovation; and
5. Greater use of regulatory passports, mutual recognition arrangements, or equivalence regimes where appropriate to reduce regulatory fragmentation due to the global nature of many neo-brokers.
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