Europe's Securities Watchdog asks for feedback to regulations in the run-up to the DLT pilot project-regulation

The ESMA, the European securities and market supervisory authority, has set itself the goal of determining whether the EU authorities have to change existing regulations in order to facilitate trading and handling tokenized securities. The regulatory authority is now obtaining statements on this matter before introducing a pilot system for market infrastructures based on the distributed Ledger technology (DLT).

ESMA collects contributions from interests to the DLT pilot regime for securities

The European Securities Supervision ESMA accepts public comments on the possible update of the regulations for the implementation of DLT solutions on the market. The authority must check whether some technical regulatory standards (RTS) in Financial Instruments Regulation ( mifir ) must be changed securities output.

The standards in question relate to trading transparency and data reporting obligations, the ESMA determines in a "Call for Evidence" document published this week, in which feedback is obtained from various interest groups. This includes trading places, securities processing systems and companies that plan to work as part of their DLT pilot regime, and other market participants who intend to use DLT market infrastructures.

In the announcement, it is pointed out that the text of the DLT pilot project has not yet been completed, but since an agreement between the European Parliament and the European Council has already been reached in November, ESMA considers it necessary to start with the consultations. The regulatory authority explains:

The DLT pilot regime is expected to come into force in early 2023, which leaves little time for the evaluation and possible changes to the RTS.

The regulatory authority based in Paris will accept and check the statements of interested circles by March 4, 2022. Based on the feedback from the market participants, the authority will consider making specific changes to the RTS.

If such changes are considered necessary, the European Securities Supervisory Authority will again obtain public opinion on its proposals by a consultation paper to be published before the final draft of the European Commission is presented. The executive in Brussels will have the last word about her assumption.

Do you expect the EU to change its regulations on DLT pilot regime for securities trading and processing? Tell us in the comment area below.

lubomir Taskensev

lubomir Taskersev is a technically experienced journalist from Eastern Europe, who likes Hitchens' quote: "To be a writer is what I am and not what I do." In addition to crypto, blockchain and fintech, international politics and business are two other sources of inspiration.

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