CHILE Law and Practice Contributed by: Alberto Alcalde, María Catalina Zegers García-Huidobro and Pía Robledo, Puga Ortiz
• comply with governance and risk management standards; • ensure operational capacity for secure transaction processing; and • implement AML and CFT measures. Decentralised cryptocurrency exchanges (DEXs) operate through distributed protocols or smart con - tracts, enabling users to trade crypto-assets without a traditional intermediary. While no specific regula - tory regime applies to DEXs as such, their activities may nevertheless be subject to regulatory scrutiny depending on their functional characteristics and the involvement of identifiable service providers. 6.4 Listing Standards Listing standards for financial instruments, including those traded on platforms such as alternative trading systems, are regulated to ensure transparency, inves - tor protection and market integrity. Financial instruments must be registered in the Secu - rities Registry if they are subject to public offering. Platforms facilitating the trading of financial instru - ments must be authorised by the CMF. Platforms must provide clear and accurate information about the financial instruments listed, including their characteristics, risks and conditions. Issuers must disclose essential information about their financial, economic and legal situation. Platforms must also implement governance and risk management policies to ensure fair and transparent trading. Certain instruments, such as unregistered securities, are excluded from public offering unless explicitly authorised. 6.5 Order Handling Rules Order handling rules apply under law, particularly for platforms categorised as alternative trading systems and entities involved in order routing. These rules are designed to ensure transparency, fairness and effi - ciency in the execution of orders.
Platforms and intermediaries must: • ensure the best execution of orders, prioritising fairness and efficiency in processing; • maintain operational capacity to support the secure and timely processing of transactions; and • provide clear information about the conditions of access and functioning of their systems. Platforms must disclose: • the conditions under which orders are routed and executed; and • any potential conflicts of interest that may arise in the handling of orders. Platforms facilitating order routing must adopt internal regulations to ensure an equitable, competitive and transparent market, promoting proper price formation and the best execution of user orders. The CMF oversees compliance with these rules and may impose corrective measures or suspend opera - tions if platforms fail to meet order handling stand - ards. Platforms and intermediaries strive to execute orders at the best available price and under optimal conditions for clients. Transparency in disclosing con - flicts of interest is critical to maintaining trust. 6.6 Rise of Peer-to-Peer Trading Platforms The rise of peer-to-peer (P2P) trading platforms sig - nificantly impacts both traditional financial institutions and fintech players, while also introducing regulatory challenges.
Traditional Financial Institutions Here, the following are pertinent:
• competition – P2P platforms challenge traditional institutions by offering direct, decentralised trading, often with potentially lower fees and faster transac - tions; • disintermediation – traditional players may lose market share as P2P platforms bypass intermediar - ies like brokers and banks; and • adaptation – banks and other institutions may need to innovate, adopting similar technologies or part - nering with fintechs to remain competitive.
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