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
No reservations, but the market is still incipient.
Obligations and requirements to provide trading, social trading or signalling platforms described above
The licenses that may apply to these activities are the same as the ones indicated in the answers to question b), that is, the license of Portfolio Manager or of Broker Dealer. Please refer to our answers thereto.
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
Please refer to our comments under b) Legal affairs iii).
Market size for trading, social trading or signalling platforms and biggest companies in this business area
Marginal market, and still at a very early stage.
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
When offering securities (through internet platforms or otherwise) regulations regarding the public offering vis a vis the private offering of securities must be taken into consideration. If a public offering of securities is deemed to take place in Uruguay, then certain additional registration requirements regarding the issuer and the security would be triggered.