Now that EU legislation has been adopted for a DLT Pilot Regime for securities and security tokens, the European Securities and Markets Authority (ESMA) is responsible for the regulatory aspects. It drafted an application form for organizations and institutions that want to participate in the Pilot and is inviting comments by 9 September 2022. The Pilot is not limited to regulated incumbents.
In June, the EU finalized legislation allowing new financial market infrastructures (FMIs) based on blockchain to be trialed. Specifically, the FMI can be a trading venue, a post-trade and settlement infrastructure, or the two combined.
The instruments that can be traded are equities, bonds or money market funds, and funds (UCITS), although there are financial limits outlined previously. For example, a maximum of €6 billion ($6.4bn) in securities can be issued on a single platform, and there’s a market capitalization limit of €9 billion ($9.6bn).
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
