Global Standards for Securities Holding Infrastructures: A Soft Law/Fintech Model for Reform
This Article outlines a “soft-law-to-hard-law” approach for the development and implementation of reforms to systems for the holding of publicly traded securities. It proposes the development of global standards for securities holding systems (“Global Standards”), to be led by the International Organization of Securities Commissions (the “IOSCO”). This approach contemplates that States would be encouraged and expected to implement the Global Standards by adopting “hard law” reforms through statutory and regulatory adjustments to their securities holding systems as well as modifications of the architecture of their securities holding systems. The successes of past IOSCO initiatives inspire this Article’s proposal, as do the relatively successful development and implementation of harmonized standards for supervision and capital adequacy for depository institutions (for example, banks) through the operation of the Basel Committee.