DLTR refers to Regulation (EU) 2022/858 on a pilot regime for market infrastructures based on distributed ledger technology. By virtue of DLTR a pilot regulatory regime is created for trading and settlement of financial instruments based on Distributed Ledger Technology (DLT). DLTR will be generally applicable from 23 March 2023. The Regulation establishes common requirements applicable to market infrastructures based on DLT and their authorisation regime.
The Regulation considers three types of market infrastructure based on DLT, allowing these to apply for exemptions regarding specific MIFID II and/or CSDR requirements, according to the type of market infrastructure in question, provided compensatory measures are applied. The three types of market infrastructure based on DLT are as follows: (i) multilateral trading facilities based on DLT, (ii) settlement systems based on DLT, and (iii) trading and settlement systems based on DLT.
The English version of the Guidelines on standard forms, formats and templates to apply for permission to operate a DLT market infrastructure was published by ESMA in December 2022. The translation of the Guidelines into Spanish was published on ESMA’s website on 8 March 2023. These Guidelines intend to establish standard forms, formats and templates to apply for specific permissions to operate market infrastructures based on DLT and will be applicable from 23 March 2023 onwards.
The parties interested in applying for a specific authorisation to operate a market infrastructure based on DLT will take into account that provided in the Guidelines. Guideline 2 specifies the general information to be provided on the applicants (including that contained in Table 1 of the Annex to the Guidelines) and the general information to be provided on the application (including that contained in Table 2 of the Annex to the Guidelines). Table 3 or Table 4 of the Annex to the Guidelines will be filled in, depending on the legal situation of the applicant and the nature of the application, stating the MIFID II and/or CSDR exemptions applied for and the compensatory measures proposed.
In the Guidelines, applicants for a specific permission to operate a market infrastructure based on DLT are reminded that they may have to simultaneously present further information to apply as a Central Securities Depository (CSD) or as an investment firm or to operate a regulated market or to demonstrate compliance with the provisions of MIFID II and/or CSDR. Such further information is not covered by the Guidelines.
The applications and any accompanying documentation will be submitted in English and, where applicable, in Spanish, in pdf format, and via the virtual office of the CNMV.
The CNMV has established the following email as the specific contact point centralising any enquiries regarding authorisation of market infrastructures based on DLT: Autorizaciones.Mercados@cnmv.es