According to news, the European Securities and Market Administration (ESMA) has begun to determine if the EU authorities need to modify existing regulations to promote transactions and settlements for the Currency Securities. The regulatory agency is comment on the matter before starting a market infrastructure pilot system based on distributed booklet technology (DLT).
The agency must assess whether some regulatory technical standards (RTS) developed under the Financial Tool Market Regulations (RTS) need to be modified to apply to securities of DLT issuance, transactions, and records.
ESMA pointed out in this week’s “evidence collection” document that these standards relate to transaction transparency and data reporting requirements, which seeks feedback from all stakeholders. These include trading venues, securities settlement systems, and those operating under their DLT pilot system, and other market participants who intend to use DLT market infrastructure.
The announcement pointed out that the text of the DLT pilot has not finally determined, but because the European Parliament and the European Council have reached an agreement in November, ESMA believes that it is necessary to start consultation. The regulator explained: “The DLT pilot system may be applied in early 2023, which left the RTS assessment and potential revision time.”
This regulatory authority in Paris will accept and review the advice submitted by the parties before March 4, 2022. The agency will consider specific amendments to RTS according to the feedback provided by market participants.
If these modifications are considered necessary, the European Securities and Market Authority will submit the public’s advice from the public before the final draft of RTS is submitted to the European Commission. Brussels’ administrative departments will have the final decision through these recommendations.