Financial market structure refers to the organizational framework and operational arrangements that define how financial instruments are traded, cleared, and settled. It includes the roles of various market participants, the rules governing their interactions, and the technological infrastructure supporting these processes. This structure dictates market efficiency, liquidity, and overall stability. It is a critical aspect of economic policy and regulatory oversight.
Context
The rise of digital assets and distributed ledger technology is prompting significant re-evaluation of traditional financial market structure. Discussions often center on how blockchain can alter clearing and settlement processes, potentially offering greater speed and reduced counterparty risk. News reports cover regulatory efforts to adapt existing rules or create new ones, aiming to integrate digital assets safely into the broader financial system while preserving market integrity.
The judicial ruling restores the critical trader/dealer distinction, preserving operational flexibility and avoiding onerous capital requirements for market makers.
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