BELGIUM Law and Practice Contributed by: Joan Carette, Philippe De Prez and Thomas Derval, Simont Braun
tendency to encourage this sector from the reg - ulator’s perspective. 7.2 Requirement to Be Licensed or Otherwise Register as Market Makers When Functioning in a Principal Capacity A regulated company that is engaged in algo - rithmic trading, as a member of or participant in one or more trading platforms when trading for its own account, is deemed to be implementing a market-making strategy if its strategy consists, among other things, of simultaneously publish - ing firm bid and offer prices of a comparable size and at competitive levels for one or more financial instruments on one or more trading platforms, with the result that the entire market is regularly and freely advertised on one or more trading platforms. Duties and Requirements There is a prior notification duty to the FSMA and the NBB, as well as to the competent authorities of the trading venue where the regulated compa - ny engages in algorithmic trading as a member or participant of the trading venue. The FSMA may require these firms to provide specific infor - mation on their activities. 7.3 Regulatory Distinction Between Funds and Dealers Only regulated companies engaged in algorith - mic trading are targeted by the applicable regu - lation. No further rules or distinctions are made. 7.4 Regulation of Programmers and Programming Only regulated companies engaged in algorith - mic trading are targeted by the applicable rules of the Belgian Royal Decree of 19 December 2017 and the EU Commission Delegated Regu - lation 2017/589 of 19 July 2016 with regard to RTS specifying the organisational requirements
of investment firms engaged in algorithmic trading (RTS 6). Therefore, no provisions apply specifically to the programmers developing and creating trading algorithms and other electronic trading tools. However, in case the technology used is out - sourced to a third party, DORA, applicable as of 17 January 2025, also has a significant impact on ICT third-party providers as they will qualify as ICT services third-party providers for the financial institution, and therefore be indirectly subject to DORA requirements, amongst others linked to IT security, continuity, and reporting obligations towards the financial entity. Provid - ers designated as critical third-party providers (CTPPs) by ESAs will even be subject to a direct oversight framework. Numerous underwriting processes are available to industry participants, and each comes with a different set of regulations. Actors creating their own insurance products will most likely need a full insurance company licence from the NBB in accordance with the Law of 13 March 2016 on the status and control of insurance and reinsurance companies (the “Law of Control” ). In practice, insurtechs most often act as dis - tributors or business introducers. Insurtechs as Distributors When they act as distributors, insurtechs need to be registered as insurance intermediaries with the FSMA. The regulations applicable to insur - ance intermediaries are mainly contained in the 8. Insurtech 8.1 Underwriting Processes
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