The International Financial Services Centres Authority (IFSCA) on September 10, 2026, issued the International Financial Services Centres Authority (Electronic Trading Platforms) Regulations, 2026.
These regulations shall come into force on September 18, 2026.
The following has been stated:
• The Regulations establish a regulatory framework for Electronic Trading Platforms (ETPs) operating in an International Financial Services Centre (IFSC). They come into force from the date of publication in the Official Gazette and regulate platforms facilitating offers for sale, purchase or exchange of eligible securities, money market instruments, foreign exchange and derivatives. An ETP Operator shall generally obtain registration from IFSCA, subject to exemptions for specified IFSC Banking Units and certain overseas platforms. Eligible applicants include IFSC-incorporated companies, branches of ETP operators from specified eligible jurisdictions and certain IFSC financial institutions. Registration is subject to requirements relating to management expertise, financial soundness, fit-and-proper status, risk management, internal controls and business viability. The minimum net worth is USD 200,000, with the Authority empowered to prescribe a higher requirement.
• The Regulations prescribe extensive operational, participant, risk-management and market-integrity requirements. ETP Operators shall maintain transparent and non-discriminatory trading rules, real-time surveillance, conflict-of-interest policies, secure connectivity, grievance redressal mechanisms, business continuity and disaster recovery arrangements, and cyber-security and resilience measures. Participants may include institutions, proprietary trading firms, funds, family offices and treasury centres, subject to objective admission criteria and due diligence. Operators shall establish systems to prevent market abuse, manage erroneous trades and control trading risks; where algorithmic trading is permitted, additional testing, disclosure and competency requirements apply. Clearing and settlement arrangements shall receive prior Authority approval, while payment-system activities require authorisation under the applicable IFSCA regulations.
• The framework also provides for data preservation, regulatory reporting, inspection, investigation, audit and supervisory directions. ETP-related data shall generally be retained in readily retrievable form for at least eight years, and operators shall appoint a compliance officer and submit specified returns and audited financial statements. IFSCA may inspect, investigate or audit an ETP Operator, appoint auditors, recover related expenses and issue directions. The Authority may also relax specified requirements in the interest of developing the IFSC financial-services market, subject to written reasons and a USD 1,500 non-refundable fee. The First Schedule identifies eligible jurisdictions including Singapore, India, the United States, the United Kingdom, the European Union and DIFC, subject to the specified regulatory authorisations.
[Notification No. - IFSCA/GN/2026/ 016]
