UAE - Mubasher: The UAE-based Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has issued its guidance on the development and use of Application Programming Interfaces (APIs) in the ADGM.
In this regard, FSRA sees that adopting internationally recognised APIs is one of the key promoters to realising digital transformation inside an organisation, while also creating an ‘’efficient, connected and secure’’ economy, according to a press release on Monday.
Therefore, FSRA’s standards centre around ‘’the design, documentation, security, data governance, maintenance, and use of APIs for firms setting up in or operating from the ADGM’’ considering some objectives, according to the press release.
Interoperability is one of the objectives FSRA’s standards promote; it stands for ‘’the adoption of globally recognised and accepted standards for the sustainable growth of the digital economy, operability across sectors and connectivity to global markets.’’
Among other objectives that FSRA’s standards enhance is resilience, which refers to the "internationally recognised security and governance practices to safeguard consumers and the integrity of the financial services market."
The standards further promote innovation and collaboration that "drive and encourage a culture of innovation and collaboration amongst financial services firms and technology ecosystems.’’
The regulatory guidance reflects ‘’ADGM’s ongoing commitment to support Abu Dhabi's digital transformation agenda and reinforce Abu Dhabi’s position as a global smart city,’’ the press release said.
CEO, Financial Services Regulatory Authority of ADGM, Richard Teng, commented, ‘’The adoption of APIs has the potential to foster greater collaboration to this end, accelerate the pace of transformation and lead to greater financial inclusion in the region.’’
He further added, "This guidance promotes a standardised approach to building and providing APIs to enable scalability and interoperability in a secure manner and encourage the use of APIs within the financial services ecosystem.”
In this regard, Wai Lum Kwok, ADGM’s senior executive director - capital market at the FSRA told Mubasher in a previous interview “If a startup wants to raise capital from the private investors, or if a big company wants to do an IPO using digital tokens like the ones enabled by blockchain technology, they can do so under the ADGM’s regulatory regime as set out in the guidance.”
