EU Regulatory Updates

Author: Clerkin Lynch LLP

Date Published 17/11/2021

ESMA publishes its report on the use of FinTech by CSDs

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator published its Report on the use of FinTech by Central Securities Depositories (CSDs) on 6th August 2021.

ESMA gathered the views of NCAs and relevant market participants on their experience with and planned future use of FinTech and Distributed-ledger Technology (DLT), as well as on whether the current regulatory framework represents a barrier for them to implement projects involving DLT.

The report contains suggestions on a number of areas in which targeted amendments to the CSDR and further guidance could help CSDs in the deployment of DLT and ESMA’s recommendations will inform the European Commission’s targeted CSDR review.

In terms of next steps the European Commission is expected to prepare a related legislative proposal by the end of 2021.