Source: Afme
In a paper published today, AFME outlines the regulatory framework needed to support banks as they adopt new technologies such as crypto-assets, artificial intelligence and cloud computing, harness the value from data, and address the challenges of cybersecurity and operational resilience.
The “European Capital Markets in the Digital Age” paper calls on the European Commission to promote innovation, competitiveness, and resilience across Europe’s capital markets by providing:
• A competitive and level playing field: Ensuring all firms involved in financial services, including technology firms, adhere to the ‘same risk, same activity, same regulation’ principle
• Technology neutral legislation: Providing flexibility for firms to adopt new technologies in a risk based and proportionate manner
• Global consistency: Promoting regulatory harmonisation across the EU, and global cooperation and consistency to reduce the barriers for technology adoption
James Kemp, Managing Director, Head of Technology and Operations at AFME, said:
“Evolving technologies are enabling innovative financial products and services, improving the resilience of financial markets, and supporting new ways of working. It is important that consistently applied regulation supports these new technologies to unlock a vibrant and competitive Digital Single Market and build stronger, more efficient capital markets infrastructures. The COVID19 pandemic has reinforced this requirement, demonstrating how technology and has underpinned the continued functioning and resilience of capital markets.”