HM Treasury published today its consultation on the Digital Securities Sandbox (DSS) – the first financial market infrastructure sandbox. The DSS will allow market participants to establish financial market infrastructures that utilise digital asset technology (such as digital trading venues and digital central securities depositories), under a temporarily modified legislative and regulatory framework. The aim is to enable digital securities to be tested and ultimately adopted across financial markets.
The consultation invites feedback from industry by 21 August 2023. It also invites respondents to formally express their interest in using the DSS, noting that conversations with potential applicants should begin as early as possible.
DLA Piper recently completed a FCA Sandbox project to test the ability of regulatory compliance tech to adapt for digital securities issuances. The project involved Montis Group, a leading innovator in the digital securities industry in the post-trade marketing infrastructure space, and was led by Martin Bartlam (Partner) and Marina Troullinou (Associate). We look forward to the innovations that the DSS will bring in the financial market infrastructure space. If you have questions about responding to the DSS consultation or applying for DSS testing we would be delighted to assist.