The European Union’s DLT Pilot Regime came into force last March. However, a year later, no infrastructures were authorized to participate. The European Securities and Markets Authority (ESMA) was expected to provide a progress report, but given the lack of activity, it didn’t. Instead, it wrote a letter outlining the progress of applications and the challenges faced.
The DLT Pilot Regime aims to temporarily waive certain legal requirements relating to funds and securities. For example, it relaxes the requirement that retail investors must trade via a broker. It also waives the need to separate the trading and post-trade infrastructure.
Currently, there are four pending applications – two in Germany, one in the Czech Republic, and one in the Netherlands. In addition, there are eight other potential ones.
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