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

A. General Requirements

1.Only VASPs Licensed by VARA to carry out Exchange Services may provide ETD Services.
2.VASPs Licensed by VARA to carry out Exchange Services shall only offer ETD Services if explicitly authorised to do so by VARA and such authorisation is expressly stipulated in the VASP's Licence.  
3.VASPs that are authorised by VARA to provide ETD Services, must comply with this Part V of the Exchange Services Rulebook, as well as any conditions or restrictions imposed by VARA as stipulated in their Licence, at all times when providing ETD Services.
4.
Trading own account. As stated in Part VII of the Market Conduct Rulebook, VASPs are prohibited from actively investing their own, or their Group's portfolio of Virtual Assets or any other assets. For the avoidance of doubt, investing in ETDs is included in this prohibition. As such, in addition to all Rules in Part VII of the Market Conduct Rulebook, VASPs authorised to carry out ETD Services must— 
 
a.not buy, sell or otherwise actively invest in any ETDs available through the VASP's ETD Services or any other service for their, or their Group's own account; and
b.comply with the reporting requirements set out in the Compliance and Risk Management Rulebook in respect of all Entities in their Group that actively invest their own, or the Group's, portfolio of Virtual Assets or any other assets by buying, selling or otherwise trading any ETDs available through the VASP's ETD Services.
 
5.Operational Exposure. VASPs authorised by VARA to provide ETD Services shall ensure that the VASP's exposure in respect of all ETD Services is included in the VASP's calculation of its Operational Exposure as required in Part VI.C of the Company Rulebook.
6.
Market. VASPs must have particular consideration for the market of the Underlying Assets for which it provides ETD Services. Such consideration shall include, but not be limited to, the following in respect of each Underlying Asset for which it provides ETD Services—
 
a.price history;
b.
liquidity, including the following— 
 
i.on both the VASP's own platform and other relevant venues;
ii.both spot and derivatives positions;
 
c.market depth;
d.likelihood and/or susceptibility to market and/or price manipulation; and
e.stability of pricing within and across all available venues.
 
7.
VA Standards. To the extent not already covered in the VASP's VA Standards, VASPs must consider the issuance schedule and tokenomics of each of the Virtual Assets which are Underlying Assets of ETDs for which it provides ETD Services including, but not limited to, all of the following— 
 
a.circulating supply; 
b.future supply; and
c.concentration of owners.
 
8.
VASPs shall only provide ETD Services in respect of Virtual Assets which comply with the VASP's VA Standards, as required in Part VIII of the Market Conduct Rulebook, and Rule ‎V.A.6 above.