Mathisen Marketing

Your Marketing Blog

EU securities regulator clears next step for a tokenized trading pilot program

EU securities regulator clears next step for a tokenized trading pilot program

As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.

Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase

The European Securities and Markets Authority (ESMA), the European supervisory authority, said it does not need to change regulatory standards for a pilot trading project using distributed ledger technology (DLT), enabling the next phase of experimental tokenized securities trading. .

The regulatory agency published its statement in a report published on Tuesday. According to the report, ESMA will monitor whether further guidance is needed to ensure that transaction information is correctly distributed to existing records, particularly for canceled or amended transactions.

ESMA’s announcement is related to the EU’s DLT pilot system, which is scheduled to start in March 2023. The project will trial the trading of tokenized securities in a controlled, regulated environment, bringing both traditional financial institutions and new digital players to the market. participate in the sandbox.

ESMA will then seek to clarify the application of “regulatory technical standards”, transparency and disclosure requirements, and guide stakeholders preparing to participate in the DLT pilot scheme.

Applications for the project can start as the publication approaches in March. Meanwhile, ESMA’s report indicates that “a significant number of market participants expressed interest in using DLT [for market infrastructure] Under DLT Pilot.”

The report included the corrections requested from the respondents to ESMA’s request earlier this year. For example, there were concerns about the transformation of blockchain technology into traditional financial transactions.

“A trade that takes place in the chain does not necessarily happen at the same time as the execution of the trade,” the report reads.

The DLT pilot scheme is part of the EU’s digital finance package, which was published in September 2020. The recently finalized Markets in Crypto-assets (MiCA) regulation is one of the other key regulations in this pod.

© 2022 The Block Crypto, Inc. All rights reserved. This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts