Question ID
2022_6632
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Liquidity risk
Article
421
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Article/Paragraph
28 (6)
Type of submitter
Credit institution
Subject matter
DLT issuances that are sold exclusively to retail or corporate investors
Question

In relation with Q&A 2013_288, can fully or partially tokenized issuances that are sold exclusively to retail or corporate investors, when duly proven and verified by DLT technology, be treated as retail stable funding or corporate funding (whichever applies) under the LCR and NSFR metrics ?

 

Background on the question

The development of Distributer Ledger Technologies (“DLT”) and their application to securities now allow for greater transparency on security transactions and ownership of the securities at any time, enabling a complete verification process on the identity of the final investor. As such, if today’s equity and debt issuances are mainly done in bearer format, the volume of products issued in a direct registered format is expected to increase.

Consequently, with appropriate processes, capablities and controls in place, the issuer will be in the position of immediately, completely and accurately identify all outstanding creditors at any time and distinguish, on an ongoing basis, their holders of debt issuances between retail, corporate and institutional investors.

Submission date
Rejected publishing date
Rationale for rejection

This question has been rejected because the question is not sufficiently clear, or has not sufficiently identified a provision of a legal framework covered by this tool that creates uncertainty and for which an explanation is merited in terms or practical implementation or application.

Status
Rejected question