ABSTRACT
Code-as-law refers to the internal rules of computing systems which take the form of executable software code and technical protocols. Computing systems have long been used in transactional and regulatory activities in the financial markets, especially the vibrant equity market and this section will use the example of that market to show how code-as-law is currently being applied to a computerised market space. This chapter has three principal aims. The first aim is to examine the technology used in different financial markets in order to understand how code-as-law defines the nature of those markets, how it assigns functions and responsibilities to participants and how it increases compliance by regulating participants’ behaviour. The second aim is to investigate whether machine learning can be incorporated into the concept of code-as-law in finance, looking in particular at the benefits and risks of implementation through RegTech, SupTech and LegalTech. The third aim is to discuss how code-as-law can be developed and applied to crypto-platforms in order to disintermediate and decentralise financial markets. How can code-as-law be adapted to the crypto-environment to enhance access to finance, to shared economy and to justice?
Keywords: code-as-law, digital regulatory reporting, crypto-market, role-of-law, access to justice, RegTech
