The distributed ledger technology offers a new way to transfer securities and record their ownership. When fully deployed, it could form the backbone of a new market infrastructure, and could even replace central securities depositaries as we know them today. The Federal Council however raised the possibility that certain distributed ledger infrastructures could be themselves qualified as central securities depositaries. This article reviews cases where the rules on central securities depositaries could apply in a distributed ledger technology context, and describes how the topic is addressed in the proposed Federal Act on Adapting Federal Law to the Developments of the Distributed Ledger Technology.

By Jacques Iffland / Ariel Ben Hattar (Reference: CapLaw-2020-05)