DLT Pilot Regime summary and the ASSETERA vision

June 8, 2022

DLT Pilot Regime summary and the ASSETERA vision

ASSETERA is aiming to apply for the DLT TSS in order to become the THE FIRST REGULATED DeFi PLATFORM FOR DIGITAL SECURITIES AND DIGITAL ASSETS.

After almost two years EU legislative making process, on 2 June 2022 the Regulation on a pilot regime for market infrastructures based on distributed ledger technology (Regulation (EU) 2022/858 “DLT-Pilot Regime”) was finally published in the EU Official Journal. The DLT Pilot Regime introduces an EU-wide regulatory sandbox within which entities willing to operate securities trading and settlement systems based on DLT (“DLT market infrastructures”).

Going live on 23 March 2023, the DLT Pilot Regime will run initially for a period of 6 years, during which regulated investment firms, market operators and central securities depositories (CSDs) willing to operate DLT market infrastructures will be able to apply with their local authority for exemption from certain requirements applicable under the Markets in Financial Instruments Regulation (MiFIR), the Central Securities Depository Regulation (CSDR) and the Settlement Finality Directive. The permission to operate DLT market infrastructure will also come with the EU passport, enabling operators to provide their services across the EU based on a single permission.

DLT Market Infrastructures

DLT multilateral trading facility (“DLT MTF”) which is a multilateral trading facility, operated by an investment firm or a market operator, that only admits to trading DLT financial instruments;

DLT securities settlement system (“DLT SS”) which is a securities settlement system, operated by a central securities depository (CSD), that settles transactions in DLT financial instruments;

DLT trading and settlement system (“DLT TSS”) which refers to a DLT MTF or DLT SS that combines services performed by a DLT MTF and a DLT SS operated by an investment firm, market operator or alternatively a CSD.

The scope of application of the pilot regime is limited to DLT market infrastructure serving the trading or settlement of financial instruments within the meaning of MiFID II that are issued, recorded, transferred and stored using a DLT (the so called “DLT financial instruments”). In order to enable tokenization of financial instruments, the EU Commission has also separately proposed the extension of the definition of a financial instrument under MiFID II which shall now include financial instruments issued by means of DLT as well.

Press contact: [email protected]