DLT Article 2: Definitions

Article 2 - Definitions

‹

Article 2

Definitions

›

For the purposes of this Regulation, the following definitions apply:

((1))

‘distributed ledger technology’ or ‘DLT’ means a technology that enables the operation and use of distributed ledgers;

((2))

‘distributed ledger’ means an information repository that keeps records of transactions and that is shared across, and synchronised between, a set of DLT network nodes using a consensus mechanism;

((3))

‘consensus mechanism’ means the rules and procedures by which an agreement is reached, among DLT network nodes, that a transaction is validated;

((4))

‘DLT network node’ means a device or process that is part of a network and that holds a complete or partial replica of records of all transactions on a distributed ledger;

((5))

‘DLT market infrastructure’ means a DLT multilateral trading facility, a DLT settlement system or a DLT trading and settlement system;

((6))

‘DLT multilateral trading facility’ or ‘DLT MTF’ means a multilateral trading facility that only admits to trading DLT financial instruments;

((7))

‘DLT settlement system’ or ‘DLT SS’ means a settlement system that settles transactions in DLT financial instruments against payment or against delivery, irrespective of whether that settlement system has been designated and notified in accordance with Directive 98/26/EC, and that allows the initial recording of DLT financial instruments or allows the provision of safekeeping services in relation to DLT financial instruments;

((8))

‘settlement’ means settlement as defined in Article 2(1), point (7), of Regulation (EU) No 909/2014;

((9))

‘settlement fail’ means settlement fail as defined in Article 2(1), point (15), of Regulation (EU) No 909/2014;

((10))

‘DLT trading and settlement system’ or ‘DLT TSS’ means a DLT MTF or DLT SS that combines services performed by a DLT MTF and a DLT SS;

((11))

‘DLT financial instrument’ means a financial instrument that is issued, recorded, transferred and stored using distributed ledger technology;

((12))

‘financial instrument’ means a financial instrument as defined in Article 4(1), point (15), of Directive 2014/65/EU;

((13))

‘multilateral trading facility’ means a multilateral trading facility as defined in Article 4(1), point (22), of Directive 2014/65/EU;

((14))

‘central securities depository’ or ‘CSD’ means a central securities depository as defined in Article 2(1), point (1), of Regulation (EU) No 909/2014;

((15))

‘securities settlement system’ means a securities settlement system as defined in Article 2(1), point (10), of Regulation (EU) No 909/2014;

((16))

‘business day’ means business day as defined in Article 2(1), point (14), of Regulation (EU) No 909/2014;

((17))

‘delivery versus payment’ means delivery versus payment as defined in Article 2(1), point (27), of Regulation (EU) No 909/2014;

((18))

‘credit institution’ means a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 of the European Parliament and of the Council ¹⁷;

((19))

‘investment firm’ means an investment firm as defined in Article 4(1), point (1), of Directive 2014/65/EU;

((20))

‘market operator’ means a market operator as defined in Article 4(1), point (18), of Directive 2014/65/EU;

((21))

‘competent authority’ means one or more competent authorities:

((a))

designated in accordance with Article 67 of Directive 2014/65/EU;

((b))

designated in accordance with Article 11 of Regulation (EU) No 909/2014; or

((c))

otherwise designated by a Member State to oversee the application of this Regulation.

17 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 ( OJ L 176, 27.6.2013, p. 1 ). ↩