MKT A7.1.4

The following information is specified for the purposes of MKT Rule A7.1.1(b):

(a) details of each facility on which the Security Token is admitted to trading or cleared including:
(i) the Person responsible for operating that facility and whether it is an AMI, ATS Operator, Regulated Exchange or other Person;
(ii) details of each DLT application used by the operator to facilitate trading or clearing of the Security Token and the functionality provided by that DLT application;
(iii) details as to how the operator of the facility meets the technology and governance requirements set out in COB section 14.1;
(b) details of the custody arrangements for the Security Token that are permitted or required by the operator of each facility, including, for each such arrangement:
(i) the Person who carries out the function of the Digital Wallet service provider;
(ii) the Person who is responsible for the safe custody of the Security Token when held in the Digital Wallet; and
(iii) risks associated with the Digital Wallet, such as the consequences of the loss of cryptographic keys (private and public), cyber security risks associated with Digital Wallets held online, loss, theft or destruction of Digital Wallets held offline, and whether and how such risks are addressed;
(c) whether smart contracts are being used or executed on the facility and, if so:
(i) what form those smart contracts take;
(ii) how the legal rights and obligations arising under the smart contracts are performed, including when contract or settlement finality occurs (whether by the smart contract itself, an underlying natural language contract or a combination of both); and
(iii) details of the relationship between those smart contracts and any underlying natural language contract.


Derived from DFSA RMI313/2021 (Made 30th June 2021). [VER18/10-21]