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EU Launches DLT Sandbox for Trading & Post-Trade Infrastructure

Key takeaways:
  • The European Commission introduced a draft of a regulation providing for a sandbox for DLT based-trading and post-trading market infrastructures.
  • The sandbox will allow investment firms and market operators authorized under MiFID to operate DLT-based multilateral trading facilities while being exempted from certain MiFID rules.
  • Central securities depositories authorized under the CSDR will also be able to operate DLT-based securities settlement systems while being exempted from certain CSDR requirements.
  • The exemption will be only granted to DLT-based market infrastructures providing trading and post-trading services with respect to DLT-based transferable securities that are illiquid.