United Kingdom: Opened consultation on Bank of England and FCA draft guidance on Digital Securities Sandbox

On 3 April 2024, the Financial Conduct Authority (FCA) and the Bank of England opened a public consultataion on the draft guidance on the Digital Securities Sandbox (DSS) until 29 May 2024. The DSS aims to amend UK regulations to facilitate the use of emerging technologies, notably Distributed Ledger Technology (DLT), in the trading and settlement of digital securities, including shares and bonds. The FCA and the Bank of England initiative would allow successful applicants to offer securities depository and settlement services, as well as operate a trading venue under revised regulations, all from a singular legal entity. The consultation seeks input on the operational aspects of the DSS to ensure it maximises technological benefits while safeguarding financial stability and market integrity.