ESMA recommends ISO-standard DTI codes for DLT pilot
11 January 2023 France
Image: Monster Ztudio/stock.adobe.com
The European Securities and Markets Authority (ESMA) has recommended ISO-standard digital token identifier (DTI) codes for use in its distributed ledger technology (DLT) pilot regulatory regime, which comes into force 23 March 2023.
The pilot builds on the existing MiFIR regulations to include tokenised financial instruments. This will improve both pre- and post-trade transparency, ESMA claims, along with bringing DLT-based securities under greater scrutiny for market abuse.
The DTI Foundation, a trading division of Etrading Software, provides ISO-standard identification codes to digital assets and DLTs. This allows for greater EU regulatory oversight, it claims, along with more efficient monitoring of stable coin and digital asset systemic risks.
Currently, more than 1000 ISO identification codes are available for commonly traded digital assets.
Sassan Danesh, CEO of Etrading Software, says: “We are proud to operate this critical market infrastructure on behalf of ISO. Our mission is to increase market stability, transparency and efficiency in the digital asset space and we will continue to work with public authorities and industry to provide this service to the benefit of all stakeholders.”
Jim Northey, chair of ISO TC68 Financial Services, comments: “The ISO 24165 DTI standard has been designed to work well with existing ISO standards that are utilised for regulatory reporting. The DTI simplifies the addition of digital asset trading and reporting into existing systems.”
The pilot builds on the existing MiFIR regulations to include tokenised financial instruments. This will improve both pre- and post-trade transparency, ESMA claims, along with bringing DLT-based securities under greater scrutiny for market abuse.
The DTI Foundation, a trading division of Etrading Software, provides ISO-standard identification codes to digital assets and DLTs. This allows for greater EU regulatory oversight, it claims, along with more efficient monitoring of stable coin and digital asset systemic risks.
Currently, more than 1000 ISO identification codes are available for commonly traded digital assets.
Sassan Danesh, CEO of Etrading Software, says: “We are proud to operate this critical market infrastructure on behalf of ISO. Our mission is to increase market stability, transparency and efficiency in the digital asset space and we will continue to work with public authorities and industry to provide this service to the benefit of all stakeholders.”
Jim Northey, chair of ISO TC68 Financial Services, comments: “The ISO 24165 DTI standard has been designed to work well with existing ISO standards that are utilised for regulatory reporting. The DTI simplifies the addition of digital asset trading and reporting into existing systems.”
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