Licensing DLT MTF, DLT SS, DLT TSS (DLT Pilot Regime)

The investment company (brokerage house), regulated market and securities depository from 22.06.2023 may operate the ATS (MTF) and securities depository services on DLT for 6 years with direct access for retail customers and without maintaining a securities account.

• The DLT Pilot Regime (go to the discussion on the DLK pages) unlocks the provision of services for securities and financial instruments based on distributed ledger technologies (DLT).
• Entities designated in the regulation (investment firms, operators of regulated markets, central securities depositories) can provide the service of running an MTF (ATS) and securities depository with derogations from the key requirements of MiFID and the CSDR regulation under the terms of the regulation.
• Providing services based on DLTs under the terms of the regulation requires obtaining a separate authorization from the supervisory authority in (in Poland, authorization from the Polish Financial Supervision Authority).
• The authorization entitles the applicant to provide the services stipulated by the regulation (DLT MTF, SS, TSS) and to apply the derogations from MiFID and CSDR requirements (in Poland, the requirements of the Act on Trading in Financial Instruments) requested by the applicant.
• It is expected that the FSA will start issuing permits after the introduction of legislation in Poland that aligns domestic regulations with the regulation. This is not a foregone conclusion, as the DLT Pilot Regime – unlike, for example, MiCA – does not require the designation of authorities competent for matters regulated by the regulation.

HIGHLIGHTS OF DLT MTF, DLT SS, DLT TSS LICENSES