Definition ∞ A DLT trading system is a platform that utilizes Distributed Ledger Technology to facilitate the exchange of financial instruments or digital assets. These systems enable direct, peer-to-peer transactions without relying on a central intermediary for record-keeping. They offer potential benefits such as increased transparency, reduced settlement times, and lower operational costs.
Context ∞ The development and adoption of DLT trading systems are prominent topics in financial technology news, particularly regarding their potential to modernize traditional capital markets. Regulatory bodies are evaluating how to oversee these innovative platforms while balancing efficiency with investor protection. Discussions often address the interoperability of DLT systems with existing financial infrastructure.