Implications of Germany’s Draft Electronic Securities Regulation for RegTech and SupTech

ZWIRN Working Paper-ZWP/2020/3

31 Pages Posted: 1 Dec 2020 Last revised: 27 Sep 2021

See all articles by Stefan Zeranski

Stefan Zeranski

Ostfalia Hochschule für angewandte Wissenschaften - ZWIRN-Research Center

Ibrahim E. Sancak

ZWIRN-Research Center/Ostfalia University of Applied Sciences; European Corporate Governance Institute (ECGI)

Date Written: September 14, 2020

Abstract

This paper documents implications of Germany’s draft regulation on electronic securities for RegTech and SupTech. Regulation of electronic securities or a dematerialized system should not only serve the development of the private sector, FinTech and RegTech for regulatory compliance but also serve the public sector, namely support RegTech for regulators and SupTech for financial supervisors. Electronic securities have the potential to increase operational efficiency and accuracy both in compliance and supervision, namely, corporate governance, audit, and surveillance by deploying RegTech and SupTech systems. Digital transformation in the financial sector should include considerations in line with the digital finance requirements, such as closing the technology gap between the private and public sectors and managing asymmetric technology risks. Germany’s draft regulation is a strong signal for digital transformation in Germany; however, it does not foresee a fully dematerialized system, a prerequisite for well-designed RegTech and SupTech systems.

Keywords: Asymmetric Technology, BaFin, Blockchain, Crypto Securities, Cyber Risk, Dematerialization, Digitalization, Digital Transformation, DLT, Electronic Markets, Electronic Securities, FinTech, Germany, Green Blockchain, RegTech, Regulatory Risk, SupTech, Sustainable Finance.

JEL Classification: G23, G28, G30, G38, K22, O31, O32, O38

Suggested Citation

Zeranski, Stefan and Sancak, Ibrahim E., Implications of Germany’s Draft Electronic Securities Regulation for RegTech and SupTech (September 14, 2020). ZWIRN Working Paper-ZWP/2020/3, Available at SSRN: https://ssrn.com/abstract=3692401 or http://dx.doi.org/10.2139/ssrn.3692401

Stefan Zeranski

Ostfalia Hochschule für angewandte Wissenschaften - ZWIRN-Research Center

Germany

Ibrahim E. Sancak (Contact Author)

ZWIRN-Research Center/Ostfalia University of Applied Sciences ( email )

Germany

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
154
Abstract Views
547
rank
259,088
PlumX Metrics