IFSCA clarification regarding Remote Trading Participants on Stock Exchanges in the IFSC

International Financial Services Centres Authority has issued a circular governing Remote Trading Participants on Stock Exchanges in the IFSC. Here’s a breakdown of what this circular entails:

Introduction of RTPs

Foreign entities, devoid of a physical presence in IFSC, are now permitted to engage in direct proprietary trading on Stock Exchanges, sans the necessity of a Broker-Dealer intermediary.

Criteria for Onboarding RTPs

  1. Eligible entities must hail from countries whose securities market regulators are signatories to the IOSCO-MMoU or have bilateral MoUs with IFSCA.
  2. They must be existing members of specified Stock Exchanges for a minimum of one year.
  3. Entities must be corporate bodies and not residents of countries flagged by FATF for AML/CFT deficiencies.
  4. RTPs are limited to proprietary trading and are barred from onboarding clients. Trading activities are confined to cash-settled derivative products.
  5. RTPs must collaborate with an IFSCA-registered Clearing Member for transaction clearing and settlement.
  6. Indian incorporated entities are ineligible for RTP onboarding.

Compliance Requirements

RTP onboarding must adhere to IFSCA’s AML/CFT and KYC guidelines of 2022.

Terms and Conditions

Recognized Stock Exchanges within IFSC are tasked with outlining specific onboarding terms, including risk management measures and a code of conduct for RTPs.

Operational Flexibility

Stock Exchanges possess the autonomy to stipulate net-worth criteria, security deposits, application and annual fees, and additional conditions for RTP onboarding, ensuring compliance with prescribed regulations.


Stock Exchanges are mandated to enact necessary amendments to their bye-laws, rules, and regulations to accommodate RTPs.


Stock Exchanges must furnish IFSCA with monthly updates on the implementation status of this circular.


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