Regulated Trading Facilities

Definition ∞ Regulated trading facilities are venues where financial assets are exchanged under specific governmental oversight. These are platforms, such as stock exchanges or derivatives markets, that operate under the direct supervision of financial authorities to ensure fair and transparent trading practices. They adhere to strict rules regarding market conduct, participant eligibility, reporting requirements, and capital adequacy. Their purpose is to provide a secure and orderly environment for price discovery and liquidity, protecting investors from manipulation and fraud.
Context ∞ The expansion of regulated trading facilities to include digital assets is a significant trend, driven by increasing institutional interest and regulatory clarity. Jurisdictions are working to integrate digital asset exchanges and platforms into existing financial market structures or to create new regulatory categories for them. A key debate involves adapting traditional market supervision models to the decentralized and global nature of many digital asset markets, aiming to balance innovation with investor protection.