9th of september 2022

Consultation paper – proposed changes to midchains multilateral trading facility rules (“mtf rules”)

In line with admitting to trading more assets, MidChains is hereby consulting on its proposed changes to its MTF Rules.

The proposed draft of the Market Rulebook can be downloaded here
MidChains welcomes feedback on the proposed amendments of the Rules within 14 days from the publication date of this Consultation Paper as to whether there is sufficient clarity within the MTF Rules on the additional rules and requirements, especially for Rules 4.4, 4.8, 7.1.2, 7.1.3 (a), 9.2 – 9.4, 10.1.2, 12.1.5, 13.1.3, 13.2.4, 16.1 -16.2, 18.1, 20.4.4 of the MTF Rules.

The proposed new Rules will mainly be of interest to Clients who would be trading Stablecoin to Fiat Currency pairs (as defined in the MidChains – MTF Rules v5.0). The Rules state the inclusion of such pairs as an ancillary product for trading on the MTF. The changes to the Rules aim to ensure and reinforce Clients’ protection and will provide more clarity on the various levels of risks for these Pairs. They also consider the obligations which MidChains is subject to, in terms of maintaining a Fair and Orderly Market, and Financial Crime prevention and will align the offering of these new Assets on MidChains platform with global best practices.

Summary of the proposed changes:

• Rule 4.4, 9.2.1, 9.2.2, 9.3, 9.4, 12.1.5, 13.1.3, 13.2.4, 16.1.2 (a), and 20.4.4 are amended to include coverage of Stablecoin to Fiat Currency pairs;
• Rule 4.8 has been added to highlight the addition of a Stablecoin to Fiat Currency pair as an ancillary product for trading on the MTF; and
• Introduction (3), Rule 7.1.2, 7.1.3 (a), 10.1.2, 16.1, 16.1.2, and 16.2 are amended to inform Clients that Stablecoin to Fiat Currency pairs are not covered and/or part of monitoring for potential Market Abuse, or as part of FSRA’s full regulatory oversight.

Please be informed that Stablecoins such as USDC, when paired with Fiat Currencies will be regarded and treated by MidChains as Stablecoin to Fiat Currency Pair, and consequently, the new proposed Rules will be applied accordingly. Clients are also encouraged to read and understand the relevant Risk Disclosure Statements.

The Risk Disclosure Statements can be downloaded here.

Comments should therefore be made no later than the end of 24th of September 2022.

Summary of the proposed changes:

• Rule 4.4, 9.2.1, 9.2.2, 9.3, 9.4, 12.1.5, 13.1.3, 13.2.4, 16.1.2 (a), and 20.4.4 are amended to include coverage of Stablecoin to Fiat Currency pairs;
• Rule 4.8 has been added to highlight the addition of a Stablecoin to Fiat Currency pair as an ancillary product for trading on the MTF; and
• Introduction (3), Rule 7.1.2, 7.1.3 (a), 10.1.2, 16.1, 16.1.2, and 16.2 are amended to inform Clients that Stablecoin to Fiat Currency pairs are not covered and/or part of monitoring for potential Market Abuse, or as part of FSRA’s full regulatory oversight.

Please be informed that Stablecoins such as USDC, when paired with Fiat Currencies will be regarded and treated by MidChains as Stablecoin to Fiat Currency Pair, and consequently, the new proposed Rules will be applied accordingly. Clients are also encouraged to read and understand the relevant Risk Disclosure Statements.

The Risk Disclosure Statements can be downloaded here.

Comments should therefore be made no later than the end of 24th of September 2022.

Please send your responses through our mailbox.

Contact us: consultation@midchains.com

Mail: 128666, Al Sila Tower, Al Maryah Island, Abu Dhabi, UAE

Instructions on responding to the consultation paper.
In your responses, please include the following:

• The organisation that you are representing, if any;
• Your email address and contact number;
• A summary of related points;
• A statement of interest; and
• Clear explanation(s) of comment(s), identifying the specific provision on which any comment is made.