• news code : 208444
The beginning of a new chapter in capital market innovations
The unveiling of the capital market regulatory sandbox marks the beginning of a new chapter in capital market innovations.

(SHADA: TEHRAN) -- Dehghan Dehnavi, head of the Securities and Exchange Organization, said at the unveiling ceremony of the capital market regulatory sandbox: Organizations are always faced with a wide variety of suggestions and ideas for implementation, some of which seem feasible at first glance and some seem unworkable.

Stating that among the applicable and inapplicable ideas, there are various ideas with different degrees of risk, he added: The test environment, or sandbox, provides an opportunity for proposals to be tested in a supervised environment without cumbersome rules before they are rejected.

The head of the Securities and Exchange Organization further noted that the sandbox is not different from the real world in terms of performance, continued: Of course, in the test environment, we set aside the rules, restrictions, and constraints, and the ideas are implemented in a supervised environment. Therefore, in such an environment, it is desirable to allow the various institutions to determine whether they can enter the capital market or not.

Dehghan stressed that the role of governments is regulation and they should stay away from ownership, adding: We have now entered a new space in regulation. Governments or organizations can no longer regulate without the participation of stakeholders. Actions and reactions must be examined and reactions to the new tool must be seen. In this situation, the result is that laws are enacted that involve stakeholders in this regulation, and we have reached the optimal version.

In the capital market, we have moved in this direction and in the coming months we will publish the report of new financial instruments that were tested in the capital market sandbox, the head of the Securities and Exchange Organization said.