Trading platforms / social trading platforms / signal following
FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g., securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.
FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.
The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.
Attitude of the country towards trading, social trading or signalling platforms
A high percentage of the people in BiH are not familiar with trading, social trading and signalling services and therefore these types of services are not popular in BiH. The functioning of the stock market is strictly supervised by the securities commissions. Since securities markets in BiH are regulated at the entity level, there are two (2) securities commissions supervising the market, each within its competences.
Obligations and requirements to provide trading, social trading or signalling platforms described above
Securities trading in BiH takes place through stock exchanges, organised trading facilities (OTC) or other regulated markets. There are two (2) stock exchanges located in Sarajevo and Banja Luka, both adhere to the similar regulatory principles and standards stipulated by the relevant capitals market legislation in both entities (FBH Law on Capital Markets and RS Law on Capital Markets). Additionally, the stock exchange can be founded by at least five (5) professional intermediaries with the approval of the securities commissions. The equity of a stock exchange amounts to at least BAM 200,000 (approx. EUR 100,000). The stock exchange shares are not transferable except when a shareholder ceases to be a member of the stock exchange. The fee for obtaining the licence for stock exchange amount to BAM 10,000 (approx. EUR 5,000).
Additional comments regarding the legal situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area
Market size for trading, social trading or signalling platforms and biggest companies in this business area
Additional comments regarding the economic situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area