IFSC issues directions on implementation for the use of electronic trading platforms and brokers.

The International Financial Service Centres Authority vide its notification dated 2nd February 2021 has issued directions for implementation for the Use of Electronic Trading Platforms (ETP) and Brokers.

The Authority has allowed the banking units to undertake permissible transactions through an Electronic Trading Platform (ETP) without the need for such ETP to be a company incorporated in India and the BUs may also undertake permissible transactions by using the services of third-party voice brokers.

Further, the banking units are advised that prior to undertaking transactions on an ETP or through a voice broker they must assess document, and appropriately mitigate any risk arising from undertaking transactions on such ETP or through a voice broker.

The banking units shall report to the authorities at the end of each quarter, about the names of the ETPs and third-party voice brokers through whom they have undertaken permissible transactions during the quarter along with the volume of business conducted through each ETP and/or voice broker.