UK Law and Practice Contributed by: James Burnie, Kathryn Dodds, Olga Antonova and Holly Joseph, gunnercooke llp
6.4 Listing Standards The requirement for listing standards very much depends on the nature of the securities exchange. There may be a requirement for a pro - spectus when selling certain securities – and at the other end of the spectrum, listing on a regu - lated market requires compliance with a detailed rulebook of requirements. In the context of crypto-assets, the FCA has published a discussion paper (DP24/4) setting out proposed requirements for disclosures when seeking to admit crypto-assets to exchanges so that they can be sold into the UK. These are currently high level, however further detail is expected as the rules come into effect during the next year. 6.5 Order Handling Rules In relation to securities, order handling rules already exist. In broad and general terms, firms which are authorised to execute orders on behalf of clients must implement procedures and arrangements which provide for the prompt, fair and expeditious execution of client orders, rela - tive to other orders or the trading interests of the firm. These procedures or arrangements must allow for the execution of otherwise compara - ble orders in accordance with the time of their reception by the firm. The requirements for an undertaking for a collec - tive investment in transferable securities (UCITS) management company providing collective portfolio management services are slightly dif - ferent, as they must establish and implement procedures and arrangements in respect of all client orders they carry out which provide for the prompt, fair and expeditious execution of portfo - lio transactions on behalf of the UCITS scheme it manages.
ping money laundering rather than a full con - duct of business regime. Over the next year, this is expected to change as a new regime for crypto-asset businesses is being developed. Whilst the specifics are currently to be deter - mined, it is clear that the new regime for crypto- asset exchanges will be heavily influenced by the traditional approach to securities regulation, with some differences reflecting the specifics of the crypto industry (for example, the nature and source of insider information in relation to a crypto-asset may be different to that which exists in relation to equity). 6.3 Impact of the Emergence of Cryptocurrency Exchanges The regulation of crypto-assets has traditionally been handled differently to other asset classes, in particular by requiring registration with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The focus of this requirement has been on prevention of money laundering, rather than – eg, conduct of busi - ness and solvency. As such, it has been a slight anomaly with the general approach in the UK. Furthermore, given the MLRs set out a sepa - rate regulatory regime to that which applies to securities, firms seeking to trade both securities and crypto-assets need both licences, which is very rare and has hindered the development of this industry. In the future, this is going to change as the MLRs are phased out, and the regulation of crypto- asset exchanges will deal with issues that are broader than money laundering risk, for exam - ple, there will be a focus on disclosure require - ments, conduct of business and preventing mar - ket abuse.
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