The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 establish a controlled testing environment for innovations in financial market infrastructure. This regulatory framework focuses on integrating developing technologies, particularly digital securities and distributed ledger technology (DLT), into the financial markets. The sandbox, referred to as the Financial Market Infrastructure (FMI) Sandbox, allows businesses to experiment with new solutions under the supervision of appropriate regulators.
the regulations provide a forward-looking regulatory framework, encouraging technological advancements in financial market infrastructure while maintaining a supervised and controlled testing environment.
