The International Financial Services Centres Authority (IFSCA) on June 10, 2026, published stakeholder comments on the draft Master Circular for Broker Dealers and Clearing Members. Several suggestions seek to improve operational feasibility and ease of doing business within the IFSC ecosystem. One recommendation proposes that the SWITS portal itself should provide a dedicated format for intimating fee payments made in USD, thereby simplifying compliance and reducing dependence on separate circulars.
On compliance reporting and algorithmic trading requirements, stakeholders have requested greater flexibility. For system audit observations, it has been suggested that stock exchanges be allowed to report findings to IFSCA in the quarter following receipt of the audit report from broker dealers. Regarding mandatory participation in mock trading sessions by algorithmic traders, comments support regular testing but seek modification of the proposed penalty framework. Instead of automatic suspension of proprietary trading rights for at least one trading day, stakeholders have proposed empowering exchanges to take appropriate action based on the circumstances and adequacy of explanations provided by broker dealers.
Another significant suggestion relates to the proposed API-based Logging and Monitoring Mechanism (LAMA). Stakeholders have recommended postponing its implementation, citing the limited number of active broker participants in IFSC markets and the need for substantial additional technology infrastructure and development efforts. According to the feedback, implementation at the current stage may increase compliance and operational costs, and therefore a phased approach may be more appropriate until market participation and technological readiness improve.
