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First U.S. Secuirty Token Exchange

First U.S. Secu­ri­ty Token Exchange

The Boston Secu­ri­ty Token Exchange (BSTX) filed with the U.S. Secu­ri­ties and Exchange Com­mis­sion (SEC) a rule­book to become the first nation­al reg­u­lat­ed secu­ri­ty token exchange. On Octo­ber 17, 2019, BSTX announced that the rule­book was pub­lished by the SEC — set­ting the foun­da­tion to lever­age secu­ri­ty tokens in the Unit­ed States. The rules include a vari­ety of guide­lines to gov­ern the trad­ing of tokens as well as reg­u­la­tions for investor protection.

BSTX’s is a strate­gic part­ner­ship joint­ly owned by BOX Dig­i­tal Mar­kets LLC and tZE­RO. BSTX will oper­ate as a facil­i­ty of BOX Exchange, the par­ent firm, which is a Reg­is­tered Nation­al Secu­ri­ties Exchange under Sec­tion 6 of the Secu­ri­ties Exchange Act of 1934. The tech­nol­o­gy for its trad­ing plat­form will be pro­vid­ed by tZE­RO, a major­i­ty-owned sub­sidiary of the cryp­to play­er  Overstocks.com. tZE­RO aims to enhance effi­cien­cy and trans­paren­cy to cap­i­tal mar­kets through the inte­gra­tion of blockchain technology.

BSTX stat­ed in their ini­tial fil­ing that they would “oper­ate a ful­ly auto­mat­ed, price/time pri­or­i­ty exe­cu­tion sys­tem for the trad­ing of “secu­ri­ty tokens,” trad­ing would be enabled through the use of BSTX tokens which will offer var­i­ous ben­e­fits for investors.

The release of the rule­book by the SEC is very excit­ing news for us, as BMCP wants to see secu­ri­ty token reg­u­la­tions and investor pro­tec­tions to be leg­is­lat­ed globally.