A market structure framework defines the rules and systems governing how financial assets are traded and settled. This framework encompasses the regulations, institutions, and technological infrastructure that support market operations, including exchanges, clearing houses, and depositories. It dictates trading protocols, order matching mechanisms, and post-trade processing, aiming to ensure fairness, transparency, and efficiency. A robust market structure is essential for investor confidence and overall financial stability.
Context
The market structure framework for digital assets is a subject of intense regulatory scrutiny and development globally, differing significantly from traditional finance. Regulators are working to establish appropriate oversight for crypto exchanges, trading platforms, and other digital asset service providers. A key debate centers on whether existing securities regulations can adequately apply to digital assets or if new, tailored frameworks are necessary. The future will likely see further convergence and adaptation of market structures to accommodate the growing digital asset ecosystem.
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