Regulations for the UK’s first Digital Securities Sandbox (DSS) came into force on 8 January 2024, enabling financial market infrastructures and new entrants to experiment with developing technologies in a more flexible legal and regulatory environment than the existing framework.
Only UK entities can participate in the sandbox, with the submission of applications limited to authorised multi-lateral trading facilities and organised trading facilities, recognised central securities depositories, recognised investment exchanges, and other persons permitted to participate by the regulators. Activities must involve the use of developing technology, which includes, but is not limited to, distributed ledger technology, in a way that is not permitted under the general legal and regulatory framework.
