MFA Submits Comments to FINRA on Distributed Ledger Technology
March 31, 2017
On March 31, MFA filed a letter with FINRA in response to its report “Distributed Ledger Technology: Implications of Blockchain for the Securities Industry.” The letter is supportive of FINRA’s efforts to engage industry participants on the development of distributed ledger technology (DLT) and the potential uses in the securities industry. FINRA’s report raises important operational and regulatory questions that require careful consideration by a range of market participants. In MFA’s letter, we urged FINRA, as it monitors developments related to DLT, to ensure that:
- DLT network governance structures will promote fair, efficient and open markets, and are operated for the benefit of the public good.
- DLT networks are designed in ways to keep certain transaction and position information anonymous and private.
- DLT network operators are held to rigorous standards with respect to network and data security, and that they dedicate adequate resources towards maintaining and enhancing data security.