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Friday, August 12, 2022

BSTX Has Been Approved For Blockchain Settlements By SEC

The BSTX, or the Boston Security Token Exchange, which is a new facility of the BOX exchange based in Boston- recently received its approval from the SEC. The approval would now allow it to operate as a blockchain-based securities exchange.

The Exchange was launched jointly by Overstock’s blockchain arm tZERO and BOX, which originally sought approval for launching publicly-traded registered tokens for security. However, the approval from the SEC to operate as an exchange for national securities would allow the Boston Exchange to use the technology for blockchain for faster settlements in traditional markets.

BSTX Seems To Have Gained The Approval of the SEC

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According to the SEC, it was found that the current proposal of the BSTX did not involve the direct trading of digital tokens or any other means of using blockchain technology for any additional purposes. While the SEC did previously deny the Exchange permission to offer services that were focused on crypto, the latest approval does allow the facility to use a more proprietary market data feed, which is the Boston Exchange Market Data Blockchain. 

In addition, the BSTC will also be using blockchain technology to help the investors experience a much faster transaction time on the same day or the next day, instead of the standard two-business day settlement cycle which is usually sported by traditional markets. Along with the regulatory approval based on the rule change proposals of Boston Exchange, the SEC also placed four different conditions for BOX in line with the operations of the exchange. 

The requirement also includes joining all sorts of relevant national market system plans which are related to equities trading, which further ensures Regulatory Services Agreement with FINRA, Intermarket Surveillance Group membership for the BSTX facility, and an applicable structure of governance. 

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