“Over the past couple of years, FINRA has actively engaged with market participants to monitor developments related to DLT and its potential impact in the securities industry,” says the report, from FINRA’s Office of Emerging Regulatory Issues. FINRA believes this early collaboration “will allow the industry to reap the benefits of the technology while ensuring the protection of investors and maintenance of market integrity.”
The paper, which is intended to be FINRA’s initial contribution to an ongoing dialogue with market participants about the use of DLT, provides an overview of the technology, highlights key applications, and discusses the implementation and regulatory considerations for broker-dealers. Among the applications addressed are those being used or tested in the equity, debt, and derivatives markets, as well as shared utilities.
FINRA, the Financial Industry Regulatory Authority, regulates all securities firms doing business in the United States. FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. FINRA touches virtually every aspect of the securities business-from registering and educating all industry participants to examine securities firms, writing rules, enforcing those rules and the federal securities laws, and informing and educating the investing public. In addition, FINRA provides surveillance and other regulatory services for equities and options markets, as well as trade reporting and other industry utilities. FINRA also administers the largest dispute resolution forum for investors and firms. For more information, please visit www.finra.org.