On February 7, 2017, the European Securities and Markets Authority ("ESMA") published a report regarding distributed ledger technology ("DLT").
DLT is a developing technology that has the potential to significantly alter and bring a number of benefits to securities markets. These benefits include, among others, enhanced efficiency in post trade processes, enhanced reporting and reduced costs. With these prospective benefits, however, come potential risks and legal questions.
ESMA has therefore issued a report that summarizes its position on DLT, with a note that it will continue to monitor this dynamic technology and consider whether a regulatory response may become a necessity.
The full report is available here.
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