Many regulatory bodies, including the US SEC, have stayed cautious about guiding on so called tokenized securities. For their DLT-based post-trade process, however, industry giant DTCC is now issuing guiding principles on its own.

The publication has the format of a white paper, directly downloadable.

Brings some new stuff

According to DTCC, distributed ledger technology introduces characteristics that are different from the market structure for traditional securities, and which therefore cause new requirements in the design and application of regulations and post-trade processing structures.

Summing it up

In a one-pager infographic, DTCC extracts seven points for observation:

  • Demonstrable legal basis
  • Identifiable governance structure
  • Identifiable risk management procedures and systems
  • Identifiable procedures and systems to ensure settlement finality
  • Security-token issuance, custody and asset servicing
  • Resilience
  • Recordkeeping requirements