10 May 2023

BoI and Consob comply with ESMA guidelines to apply for permission to operate a DLT market infrastructure

The Bank of Italy and Consob, as competent authorities for Regulation (EU) 2022/858 on a pilot regime for market infrastructures based on DLT, declared compliance with the ESMA Guidelines on standard forms, formats and templates to apply for permission to operate a distributed ledger technology (DLT) market infrastructure, published in March 2023.

  

On 5 May, the Bank of Italy and Consob declared compliance with the "Guidelines on standard forms, formats and templates to apply for permission to operate a DLT market infrastructure” (MTF DLT, SS DLT or TSS DLT) (Guidelines), published by ESMA in March 2023.

The Guidelines apply both to competent authorities and applicants for specific authorization to operate DLT market infrastructure and contain standard forms and templates for submitting applications.

As specified by the Bank of Italy and Consob, entities intending to submit an application to operate a DLT market infrastructure are required to comply with the Guidelines and to submit, in Italian and English, the relevant forms. The application must be sent either to Consob or the Bank of Italy, taking into account the division of competencies between the two authorities. In particular, applications must be submitted:

  • to the Bank of Italy:
    • for DLT MTF: in all cases of wholesale DLT MTF of government bonds, or when the applicant simultaneously applies for permission under Article 19(4) of the "Consolidated Law on Financial Intermediation" (TUF) or Article 20-bis.1 of the TUF, or is already authorized under the same articles;
    • for DLT TSS: in all cases of wholesale DLT TSS of government bonds.
  • to Consob:
    • or DLT MTF: when the applicant
      • is the operator of a regulated market;
      • simultaneously applies for permission under Article 19(1) of the “Consolidated Law on Financial Intermediation”(TUF), or is already authorized under the same article;
        except for wholesale DLT MTF of government bonds
      • for DLT SS: in all cases;
      • for DLT TSS: in all cases, except for wholesale DLT TSS of government bonds.

    Interested entities may also activate preliminary contacts with the two authorities by sending inquiries to a dedicated email address.

    Entities not already authorized to provide the service of multilateral trading facilities management  and/or as central depositories will be required, as the case may be, to concurrently submit an application under MiFID II and/or CSDR regulations.

         

    Authored by Jeffrey Greenbaum and Claudia Colomba.