Yesterday the European Securities and Markets Authority (ESMA) announced there is no need for new regulatory technical standards (RTS) before the start of the EU’s DLT Pilot regime in March 2023. The Pilot regime aims to reduce the regulatory burden to enable blockchain-based securities trading and settlement to be trialed at scale and provide legal certainty. It is open to both incumbents and newcomers.
Tokenized stocks, bonds and funds (UCITS) fall within the DLT Pilot regime and have monetary limits. For example, a maximum of €9 billion can be traded or settled on a platform, and funds and bonds are for smaller market capitalizations of up to €500 million for stocks and UCITS and €1 billion for bonds.
One of ESMA’s responsibilities under the Pilot regime legislation is to assess the need for new RTS provisions, so it held a consultation and conducted a workshop.
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