The Monetary Authority of Singapore (MAS) has proposed to expand the existing recognised market operators (RMOs) regime in the wake of new business models in trading platforms, which includes peer-to-peer (p2p) and blockchain-based platforms.

The MAS has published a consultation paper on the review of the RMO regime.

“MAS has observed the emergence of new business models in trading platforms, including trading facilities that make use of blockchain technology, or platforms that allow peer-to-peer trading without the involvement of intermediaries,” the paper reads.

“As the current RMO regime has been in place since 2002, it is timely to review to the regulatory framework for market operators to ensure that it continues to meet the demands of the changing landscape.”

The MAS has proposed expanding the current RMO regime from a single tier to three separate tiers. Of these, the third tier is targeted at market operators that have a significantly smaller scale of business. and could include “operators of alternative markets, new entrants that develop solutions for wholesale market participants but do not have an established track record, or market operators that have reached the end of their sandbox tenure and are commercially viable, but whose businesses are not yet developed enough to meet the requirements of the existing RMO regime.”

“The introduction of two additional tiers in the regulatory regime for market operators will allow MAS to better calibrate the regulatory requirements and supervisory intensity based on systemic importance and target clientele,” the MAS said.