EU DLT Reforms – Improving Settlement Choice As A Key Driver for Greater Market Integration, Innovation, and Resilience

The EU's Market Integration and Supervision Package (MISP) presents a significant opportunity to modernise Europe's post-trade infrastructure through distributed ledger technology (DLT). In this position paper, AFME outlines how network-based settlement models and greater settlement choice could help reduce market fragmentation, enhance competition, support innovation and strengthen operational resilience across European capital markets. The paper argues that distributed market infrastructure can deliver the benefits of integration while avoiding the risks associated with increased centralisation.