About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

ESMA Recommends Digital Token Identifier for Pilot of Distributed Ledger Technology Regulation

Subscribe to our newsletter

ESMA has recommended use of the ISO standard Digital Token Identifier (DTI) for the pilot of its Distributed Ledger Technology (DLT) regulatory regimen. DTIs are issued by the DTI Foundation, a non-profit division of Etrading Software, with a view to bringing standardisation to digital asset and crypto markets.

The DLT pilot will apply from 23 March 2023, extending the EU’s MiFIR reporting regime to cover tokenised financial instruments, and bringing pre- and post-trade transparency and market abuse monitoring to DLT-based securities.

The DTI Foundation issued its first official DTI codes back in November 2021 and has since gone on to issue the identifiers for over a thousand of the most commonly traded digital assets, with more codes being added every day.

Jim Northey, chair of ISO TC68 Financial Services, says: “The ISO 24165 DTI standard has been designed to work well with existing ISO standards that are used for regulatory reporting. The DTI simplifies the addition of digital asset trading and reporting into existing systems.”

Sassan Danesh, CEO of Etrading Software, comments: “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 service to the benefit of all stakeholders.”

The DTI is designed to help market participants and public authorities unambiguously identify digital assets and DLTs using ISO standards. The identifier enables EU regulators to monitor digital asset trades for anti-money laundering and combating terrorist financing requirements, as well as systemic risks arising from trading of stable-coins and other digital assets. For financial institutions, the DTI provides the ability to monitor market data for tokenised securities using globally standardised reference data.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Navigating a Complex World: Best Data Practices in Sanctions Screening

As rising geopolitical uncertainty prompts an intensification in the complexity and volume of global economic and financial sanctions, banks and financial institutions are faced with a daunting set of new compliance challenges. The risk of inadvertently engaging with sanctioned securities has never been higher and the penalties for doing so are harsh. Traditional sanctions screening...

BLOG

The Data Year Ahead: AI Comes of Age, Private Markets Become Less Opaque

2026 is set to be the year in which the evolutionary changes hinted in the past 12 months become established within the data landscape, according to expert predictions. Artificial intelligence will mature into the game-changing innovation it has promised for years and private markets, whose growth in importance in the past few years has been...

EVENT

Buy AND Build: The Future of Capital Markets Technology

Buy AND Build: The Future of Capital Markets Technology London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...