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European Securities and Markets Authority Publishes Report on Distributed Ledger Technology

The European Securities and Markets Authority (ESMA) has published a report “The Distributed Ledger Technology (DLT) Applied to Securities Markets”.

The report’s conclusion is that it is premature to fully appreciate the changes that DLT may introduce, and that any regulatory action would be precipitate. ESMA has not identified any major impediments in the current European Union regulatory framework that would need to be addressed in the short term to allow for the first applications of DLT to securities markets to emerge in a scenario where DLT would be used to optimise processes within the current market structure.

However, a number of concepts, e.g. the legal certainty attached to DLT records or settlement finality, may require clarification. Also ESMA appreciates that broader legal issues, such as securities ownership, company law, insolvency law or competition/antitrust law may have an impact on the deployment of DLT.

For a full copy of the report, please click here.

Copyright 2017 K & L Gates


About this Author

Jonathan Lawrence, KL Gates Law Firm, Restructuring and Insolvency Attorney

Jonathan Lawrence has been a finance partner in the London office since 2005.

Alongside his general banking and finance work, he concentrates his practice on restructuring & insolvency matters -- Legal 500 UK 2016 Corporate restructuring and insolvency “K&L Gates LLP … maintains a ‘quality team’ that includes ‘impressive’ team head Jonathan Lawrence”.

Mr. Lawrence also plays a leadership role in the firm’s global Islamic Finance practice -- Legal 500 UK 2016 Islamic Finance “K&L Gates LLP is...