Definition ∞ Financial Market DLT refers to the application of Distributed Ledger Technology within traditional financial markets for recording and processing transactions. This includes using blockchain or similar technologies for trading, settlement, and record-keeping of securities, derivatives, and other financial instruments. It aims to enhance efficiency, transparency, and reduce operational costs.
Context ∞ News concerning Financial Market DLT often focuses on pilot programs, regulatory sandboxes, and the gradual adoption by major financial institutions. Debates center on the potential for DLT to modernize legacy infrastructure, address issues of settlement speed, and improve data reconciliation. Regulators are actively assessing the implications of DLT integration for market stability and investor protection.