Treasury has made Regulations under FSMA 2023 to create the digital securities sandbox under which firms can apply for a place to test developing technology to help FMI activities. The sandbox is open to UK Recognised Investment Exchanges, recognise Central Securities Depositories, and investment firms with permission to operate a multilateral or organised trading facility, and other firms with regulator agreement. The activities to be tested in the sandbox must relate to operating a trading venue, or providing maintenance, notary or settlement functions in connection with a sandbox instrument.
The Regulations take effect on 8 January 2024.