The European Securities and Markets Authority [ESMA], the securities market regulator of the EU, has published a report on the Distributed Ledger Technology [DLT] Pilot Regime.

The DLT Pilot Regime was introduced in 2022 and came into force on 23rd March 2023, as part of the European Commission’s Digital Finance Package aimed at developing the trading and settlement for ‘tokenised’ securities, and to support the industry’s potential whilst mitigating associated possible risks.

The report:

  • Concludes that ESMA does not consider it necessary to amend the EU regulatory technical standards [RTS] on transparency and data reporting requirements for the purpose of the DLT Pilot;
  • Makes recommendations to ensure a consistent application by DLT market infrastructures from the Regime’s beginning;
  • Presents ESMA’s proposed way forward and next steps for the Regime’s enaction;
  • Presents industry feedback received following ESMA’s previous ‘Call for Evidence’.

Relevant firms should read the ESMA report to gain further insights into the DLT Pilot Regime and its potential impacts on their operations.

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