Electronic Securities Act – eWpG

Introduction

The Electronic Securities Act (eWpG) is a significant law in Germany that regulates the introduction and administration of electronic securities. The Act is a milestone in the modernization of German securities law and contributes to the digitalization of the financial sector.

What is the eWpG?

The eWpG was passed with the aim of creating a legal framework for the issue and trading of electronic securities. It allows securities to be issued electronically without the need for a physical securities document. The law also establishes the requirements and obligations for parties involved in the issuance, administration and trading of electronic securities.

Main objectives of the eWpG

1. Promoting digitization: The eWpG aims to promote digitization in the financial sector by enabling the issue and trading of securities in electronic form.
2. Create legal certainty: The creation of a clear legal framework for electronic securities is intended to ensure legal certainty for issuers, investors and service providers.
3. Increase efficiency: The ability to issue and trade securities electronically can lead to more efficient and cost-effective processing of securities transactions.

Main features of the eWpG

• Electronic securities: the law allows the issuance of bonds and other securities in electronic form.
• Electronic Securities Registry: Electronic securities must be registered in an electronic registry maintained by a central securities depository or a special registrar.
• Transparency and information obligations: Issuers of electronic securities must publish certain information and fulfill transparency obligations.
• Technology Neutrality: the law is technology neutral, leaving room for the use of various technologies, including distributed ledger technology (DLT), to manage electronic securities.

Conclusion

The eWpG is an important step in the further development of the German financial market in the digital age. By creating a legal framework for electronic securities, it helps to create legal certainty, increase efficiency and promote digitalization in the financial sector.