The French and Italian authorities make proposals for a more competitive “Pilot Regime” in Europe
Executive Summary
The French (AMF) and Italian (Consob) financial authorities have jointly proposed amendments to the EU's DLT Pilot Regime to increase its competitiveness and attract market participants. The Pilot Regime, which became operational in March 2023, has underperformed with only three authorized infrastructures and minimal live trading activity, prompting regulators to recommend structural changes including greater proportionality, expanded eligible instruments, and raised activity thresholds.
What Changed
The proposed amendments address the Pilot Regime's limited uptake by introducing the following regulatory modifications: Scope Expansion - Expand eligible financial instruments from current restrictions to all financial assets - Remove categorical limitations that previously restricted participation Activity Thresholds - Raise activity thresholds from €6 billion to €100 billion - Introduce greater proportionality based on project scale, allowing smaller players simplified requirements Operational Flexibility - Remove time limits on authorizations, providing greater certainty for long-term investment - Introduce simplified compliance requirements for smaller market infrastructures Regulatory Framework - Maintain investor protection and market integrity safeguards while reducing unnecess
What You Need To Do
- *For Market Infrastructure Operators
- *Reassess Business Cases
- *Prepare Applications
- *Monitor Commission Decisions
- *Compliance Documentation
- *For Asset Managers and Issuers
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
Summary
Market infrastructures Innovation Europe & international Cooperation Other professionals Market Infrastructures Journalists Investment management companies The French and Italian authorities make proposals for a more competitive...