SEC Approves BSTX to Operate First Securities Exchange Utilizing Blockchain Technology

The Securities and Exchange Commission (SEC) has approved BSTX as a national securities exchange thus ushering in an era of a regulated exchange utilizing blockchain technology. The complete SEC filing is available below.

BSTX is a joint venture between BOX Digital Markets, LLC and tZERO.  BSTX says it will provide optional accelerated or immediate settlement (T+0/ T+1), market data transmitted via blockchain, and greater access to the public markets for early-stage companies.

BSTX anticipates that it will eventually be able to support regulated crypto markets.

Lisa Fall, CEO of BSTX, issued a statement on the news:

“We are thrilled to have the SEC’s approval to launch a new fully regulated modern exchange facility and to leverage the latest available technology to create the next generation of capital markets for issuers and investors. The SEC has taken an important step forward today in its approval of BSTX as a national securities exchange. We are eager to continue to work closely with the SEC to launch a fully regulated new exchange and to help provide capital markets with more modern tools for issuers and investors. We are particularly grateful to our technology partner in this endeavor tZERO. We are looking forward to continuing to work with them to provide institutional grade trading technology to participants on BSTX. ”

BSTX outlined the benefits for capital markets:

  • Shorter On Exchange Settlements. BSTX allows participants to elect accelerated settlement for securities listed on BSTX. BSTX’s approach is consistent with accelerated settlement capabilities currently supported by NSCC and DTC.

  • Proprietary Blockchain Data Feeds. BSTX will be using a private, permissioned blockchain that it maintains and controls, making available to industry participants certain proprietary market data related to trading activity occurring on BSTX.

BSTX aims to support both retail and institutional investors as well as issuers while setting a new standard for the use of blockchain technology. The company also views the exchange as an “industry sandbox” where a modern market structure can improve both listing and trading for all.

“Today’s approval is only the start for BSTX,” said Fall. “We are encouraged and energized by the outreach to date from both traditional and non-traditional finance participants. Utilizing future rule filings, we plan to respond with a series of further innovations that will benefit both the issuer and trading communities.”


 

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