The ECB published a report 'The use of DLT in post-trade processes', which seeks to establish a common understanding among European stakeholders of the progress the industry has made in implementing DLT in line with the current regulatory system.
Focusing on current use cases for equities and bonds, the report describes different types of securities issuance and post-trade processes.
These are categorised according to different “models” depending on how DLT is used in each instance. The report also assesses the implications of using DLT on the basis of identified market practices.
The report is structured as follows:
- Chapter 1 outlines regulatory, governance and interoperability aspects identified in the context of DLT-based solutions. It also outlines
key elements in the regulatory framework, defines potential new functions in the DLT environment and explains the concept of interoperability used in the report.
- Chapter 2: describes two DLT models and their key functionalities.
- Chapter 3 addresses the key implications of using DLT at different stages of the securities life cycle, from issuance to custody and settlement.