Ten Firms Draw Up Code of Conduct For Digital Assets

Nov 28, 2018 at 23:19

Ten of the big names in the financial services and tech industries launched the Association for Digital Asset Markets (ADAM) to establish a code of conduct for emerging digital asset markets. 

In a statement, the group explained that the code will be based on existing laws to enable fairness and orderliness in the digital asset space.

ADAM’s aim to map out a comprehensive rule book will be the first in the United States’ digital asset market.

Duncan Niederauer, former Chief Executive Officer of the New York Stock Exchange (NYSE) and current ADAM Advisory Board Member, said guidelines are “fundamental to the development of any market,” exemplifying the coming together of market leaders 200 years ago to craft rules that led to today’s NYSE code. 

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“The advent of digital assets requires a similar effort; one that will clarify existing rules and give both investors and regulators the confidence necessary to sustain this market. I applaud the firms leading the ADAM initiative and look forward to advising them on standards that will enable this market to thrive.”

ADAM’s code will set guidelines in several aspects such as market integrity; risk management; KYC and AML; custody; record keeping; clearing and settlement; market manipulation; data protection; and research, among others.

The founding members of ADAM include: BitOoda, BTIG, Cumberland, Galaxy Digital, Genesis Global Trading, GSR, Hudson River Trading, Paxos, Symbiont and XBTO

These organizations are a mix of trading exchanges, custodians, investors, asset managers, traders, liquidity providers and brokers.

ADAM is looking to expand its membership. Organizations eligible to join its circle should be involved, or are seeking to be involved, in the markets for digital assets. 

But while it awaits more peers, it will be creating a board of officers whose names will be announced in the next few months.