The Bank of England and the U.K.’s financial regulator, the Financial Conduct Authority, aim for the inaugural group of applicants to join the Digital Securities Sandbox in autumn 2024.
The Bank of England (BoE) and the Financial Conduct Authority (FCA) have begun a consultation on the draft guidance for their Digital Securities Sandbox (DSS), which is designed to allow participants to test distributed ledger technology (DLT) for trading and settlement of digital securities such as shares and bonds.
According to a joint consultation and draft guidance released on Wednesday, the sandbox will last five years and could lead to a new regulatory regime for securities settlement.
Successful applicants to use the sandbox will be able to provide securities depository and settlement services as well as operate a trading venue under modified regulations.
