DLT Pilot Regime
Distributed Ledger Technology Pilot Regime
EU regulatory framework enabling experimentation with blockchain technology in securities markets.
The DLT Pilot Regime allows market infrastructure operators to test distributed ledger technology for securities trading and settlement under relaxed regulatory requirements. The regime provides temporary exemptions from certain MiFID II, CSDR, and other regulatory requirements to enable innovation while maintaining investor protection. DLT market infrastructures can operate multilateral trading facilities and settlement systems using blockchain technology for specific categories of financial instruments. The pilot regime includes safeguards such as limits on transaction volumes, specific authorization requirements, and enhanced reporting obligations. Participants must demonstrate that DLT provides genuine innovation and efficiency gains compared to traditional systems. The regime aims to foster financial innovation while gathering experience for potential broader regulatory adaptation.
Example
Blockchain-based trading platforms, tokenized securities settlement, smart contract automation