Skip to main content
Entire section Custom print Text Only Rich Text Print

  • Part III – Exchange Services Rules

    • A. Trading Venue Participants and Code of Conduct

      1. VASPs providing Exchange Services shall publish and enforce a code of conduct or other rules for all participants on their trading venue.
      2. The code of conduct required under Rule III.A.1 of this Exchange Services Rulebook should provide VASPs the rights and/or power to implement disciplinary actions against participants on their trading venue where they breach any Regulations, Rules or Directives.
      3. VASPs providing Exchange Services shall ensure that the code of conduct provides them the necessary rights and/or powers to issue, impose, require or collect, the following—
       
        a. warnings;
        b. reprimands;
        c. training;
        d. qualification minimums;
        e. remediation plans;
        f. compliance audits;
        g. restitution;
        h. contractually agreed penalties;
        i. conditions on trading;
        j. trading prohibitions;
        k. suspensions and restrictions to trading;
        l. expulsions;
        m. cancellation of a client’s orders and any outstanding instructions from that client;
        n. report any breaches to VARA; and
        o. criminal referrals.
       
      4. VARA shall have authority to pursue such additional remedies or disciplinary measures against participants of the trading venue of a VASP providing Exchange Services as it determines and may, in its sole and absolute discretion, delegate to a VASP providing Exchange Services the ability to enforce such additional remedies or disciplinary measures upon its written consent.
      5. In addition to the above, VARA may require the suspension of trading of any Virtual Asset with effect from such time as it may determine if there are reasonable grounds to suspect non-compliance with this Part III of this Exchange Services Rulebook. If VARA has required the suspension of trading of any Virtual Asset, it may impose such conditions on the procedure for lifting the suspension as it considers appropriate.
      6. VASPs providing Exchange Services shall ensure that—
       
        a. their code of conduct or other rules with respect to the conduct of their clients and trading venue participants are fairly disclosed to all relevant Entities; and
        b. clients provide valid acceptance to such rules in the Client Agreement in accordance with applicable laws.
       

    • B. Market Surveillance and Notifications to VARA

      1. VASPs providing Exchange Services shall share information for surveillance and disciplinary purposes with VARA, including establishing arrangements that allow the VASP to share information on large exposures in correlated markets.
      2. If a VASP suspects potential abuse affecting the market, the following information shall be provided to VARA, as applicable—
       
        a. details of a participant’s positions, in particular details of any large positions held, including on-exchange, related “over-the-counter” derivatives and physical market positions;
        b. Virtual Asset inventory levels;
        c. delivery mode and forms of service;
        d. action taken to implement position management powers;
        e. changes to position limits;
        f. additional Margin calls; and
        g. other action taken by the VASP.
       
      3. VASPs providing Exchange Services shall ensure that their fee structures are transparent, fair and non-discriminatory and that they do not create incentives to place, modify or cancel orders or to execute transactions in a way that disrupts the fair and orderly functioning of any market involving Virtual Assets.
       

    • C. Trading Systems Continuity

      1. In addition to all requirements in the Technology and Information Rulebook, VASPs providing Exchange Services shall have in place effective systems, procedures and arrangements to ensure that their trading systems—
       
        a. are resilient;
        b. have sufficient capacity to ensure orderly trading under conditions of high uncertainty and/or extreme volatility;
        c. are able to reject orders that exceed pre-determined volume and price thresholds or are clearly erroneous;
        d. are fully tested to ensure that conditions under Rules III.C.1.a-c of this Exchange Services Rulebook are met; and
        e. are subject to effective business continuity arrangements including, but not limited to, back-up and/or disaster recovery systems, facilities and sites, to ensure continuity of their services and reporting ability if there is any failure of the trading system.
       

    • D. Settlement

      1. VASPs providing Exchange Services shall complete the final settlement of a Virtual Asset transaction within twenty-four [24] hours of the transaction being executed on their trading venues, subject to any factors outside the VASP’s control, including but not limited to any limitations or malfunctioning of any DLT not controlled by the VASP or its Group.