Paving the Way for Digital Transformation
ISLA is pleased to announce the publication of a new discussion paper, Paving the Way for Digital Transformation.
The emergence of Distributed Ledger Technology (DLT) and blockchain technology, poses both opportunities and challenges to traditional financial markets.
While some envisaged disintermediation and democratisation of the financial ecosystem within a short space of time a revised or alternative financial system has not spontaneously emerged.
In this discussion paper, we consider potential areas of focus that cover the relatively low uptake of DLT offerings, potential milestones to watch for and, in relation to securities financing markets, impacts from wider market adoption, particularly in areas such as primary issuance and collateralisation.
In this discussion paper, we explore:
- Where Are We Now?
- Financial Markets Need Trust & Confidence
- The Co-Existence Model: TradFi & DeFi
- The Market Needs Oversight
- Legal Certainty, Settlement Finality & Enforceability
- Maintaining the Integrity of Issued Securities
- Where Next?
Many of the topics covered in this discussion paper will also feature in the ‘Whose Token is it Anyway? The Changing Digital Asset Landscape‘ panel during our Annual Conference in Madrid.
Adrian Dale, Head of Regulation & Markets, ISLA, commented “I’m proud to announce the publication of this discussion paper. While we are not yet witnessing the wholesale transformation of financial market infrastructure, there remains a strong sentiment that we are at a critical inflection point. At ISLA we believe it is our responsibility to assist in market evolution and facilitate that smooth transition to new technologies, and part of the process is having open dialogue with the industry, regulators and innovators to drive adoption that is measured, cohesive, and collaborative in nature.”
We welcome feedback on this discussion paper and encourage members and stakeholders to join the ISLA Digital Steering Group or contact ISLA with comments or suggestions at regtech@islaemea.org for future work that can help shape the path forward.
