ESMA publishes call for evidence on DLT pilot regime

ESMA has published a call for evidence on distributed ledger technology (DLT). This forms part of the Regulation on a pilot regime for market infrastructures based on DLT. It is seeking input from stakeholders on the use of DLT for trading and settlement and on the need to amend the corresponding regulatory technical standards (RTS) on reporting and transparency requirements. The areas covered include:

  • RTS 1 (equity transparency)
  • RTS 2 (non-equity transparency)
  • RTS 3 (double volume cap and provision of data); and
  • the following RTS on reporting requirements: 22 (transaction reporting), 23 (reference data), 24 (order record keeping), and 25 (clock synchronisation).

The call for evidence also seeks views on possible methods to enable regulators to access information on transactions, financial institutions’ reference data and transparency data.

The deadline to comment is 4 March 2022. ESMA will use the feedback to consider whether any amendments to the RTS’ are necessary, and any proposed amendments will then be consulted on. The DLT pilot regime is expected to apply in early 2023.

Emma Bond