Distributed Ledger Technology (DLT) Regulation

Abstract

The DLT Regulation aims to introduce a pilot regime for the practical application of distributed ledger technology (DLT) in post-trade services. The DLT Regulation seeks to provide a regulatory framework for the development of DLT multilateral trading facilities (DLT MTFs) and DLT securities settlement systems (DLT SSS), including for the granting and withdrawal of specific permissions (that is, permissions granted under this new regulation would allow market participants to operate a DLT market infrastructure and provide their services across all Member States). It aims at providing a mechanism, procedures and rules for allowing market infrastructures to experiment DLT with legal certainty and flexibility.