ESMA recommends DTI codes for digital asset reporting

esma, dtiEurope’s securities regulator, the European Securities and Markets Authority (ESMA), has called for the use of standardised digital token identifiers (DTI) for its DLT Pilot regulatory regime.

The pilot, due to go live on March 23, is designed to extend the EU’s MiFIR regime to include digital and tokenised assets.

The DTIs are designed to provide ISO-based standardisation for these assets and assist market participants and regulators to unambiguously identify the assets.

It is a similar concept to the use of Legal Entity identifiers that were introduced in the wake of the 2008 financial crisis to identify trading entities.

A task force was set up in June 2021 with the aim of aligning the DTI with established International Securities Identification Numbers used for listed securities.

The issuance of DTI codes is managed by tech vendor Etrading Software and ESMA’s endorsement has been welcomed by the company.

“We are proud to operate this critical market infrastructure on behalf of ISO,” said Sassan Danesh, CEO of Etrading Software.

“Our mission is to increase market stability, transparency and efficiency in the digital asset space and we will continue to work with public authorities and industry to provide this vital service to the benefit of all stakeholders.”

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