The DLT Pilot Regime: ESMA issues guidelines to applicants

On the 15th December 2022, the European Securities and Markets Authority (ESMA) published the Final Report comprising of guidelines on standard templates, forms and formats to be used by market participants when applying for permission to operate any type of Distributed Ledger Technology (‘DLT’) based market infrastructure under the DLT Regulation (‘DLTR’). The Report also includes templates for applicants to request limited exemptions from specific requirements under MiFIR, MiFID II or CSDR, subject to certain conditions. DLT market infrastructure includes MTF’s that only admit DLT financial instruments to trading, as well as settlement systems that settle transactions in DLT financial instruments.

The Guidelines take into account responses received to the Public Consultation conducted in July/August 2022 and shall come into force on the 23rd March 2023. ESMA is calling upon applicants to anticipate the said date and to liaise with their national competent authority to prepare their application for permission to operate a DLT market infrastructure.

National competent authorities, including the Malta Financial Services Authority, are now expected to confirm whether they comply or intend to comply with the Guidelines in the coming months.

For further information, please contact DF’s Financial Services team on dfcs@dfadvocates.com.


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