The International Financial Services Centres Authority (IFSCA), on the comments received on the proposed IFSCA (Electronic Trading Platforms) Regulations, 2026, considered stakeholder suggestions concerning the requirement for ETP Operators to maintain electronic systems physically within the IFSC. Stakeholders requested a more principles-based approach focused on data accessibility, auditability, regulatory oversight and operational resilience, considering the significant costs of relocating centralised, cross-jurisdictional trading infrastructure.
Stakeholders also suggested prescribing minimum baseline membership eligibility requirements, defining and regulating algorithmic trading and market abuse, and replacing “recognition” with “authorisation” for consistency. Clarifications were sought regarding the scope of Eligible Instruments, particularly whether exchange-traded derivatives, spot transactions and INR/INR-linked products settled in foreign currency would be covered. Suggestions were also made regarding the definition of Eligible Jurisdictions and application of the principle of reciprocity.
Further comments proposed simplifying the definition of an Electronic Trading Platform (ETP) by removing references to clearing and settlement, since such arrangements could be addressed separately under the regulations. Stakeholders also sought clarification of “Key Managerial Personnel”, “material change in operating rules” and the terminology of “Trading Member”, with a suggestion to use the broader term “Participant” to provide flexibility in determining participation structures.
