America’s first blockchain-based stock exchange has received final approval from the US Securities and Exchange Commission (SEC).
SEC has issued an order approving the creation of the Boston Security Token Exchange (BSTX) as a trading facility of BOX Exchange.
BSTX, a joint venture of tZERO Group Inc. and BOX Digital, will become the first fully-automated, price/time priority execution exchange for trading securities that is both regulated by the SEC and leverages private blockchain technologies.
Of the benefits that the introduction of BSTX is set to provide, streamlined settlements are posed to become the most attractive. When compared to traditional exchanges that typically boast two-day settlement times, BSTX will see settlements reduced to either a same day or next day process. BSTX’s approach is integrated with the accelerated clearance and settlement capabilities supported by NSCC and DTC.
BSTX will also utilise a private blockchain to provide members with a market feed, and an anonymous insight into their own trades, as well as the trades of others.
“The SEC has taken an important step forward today in its approval of BSTX as a national securities exchange facility,” said BSTX CEO Lisa Fall. “We are eager to continue to work closely with the SEC to launch BSTX as a fully regulated 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 endeavour tZERO. We are looking forward to continuing to work with them to provide institutional-grade trading technology to participants on BSTX.”
As the newest national securities exchange, BSTX creates a new dynamic for retail and institutional investors as well as issuers while setting a new standard for the use of blockchain by spearheading the adoption of innovative technology for use cases in the mainstream securities markets.
In addition to new opportunities for more efficient allocation of issuer and investor capital the exchange will serve as an industry sandbox. “Our overarching goal is to empower developers and exchange observers to leverage the innovation and modern market structure currently being used in crypto and blockchain technologies to come up with ideas to improve the securities listing and trading experience for all,” continues Fall.
“Today’s approval is only the start for BSTX. We are encouraged and energised by the outreach to date from both traditional and non-traditional finance participants. Utilising future rule filings, we plan to respond with a series of further innovations that will benefit both the issuer and trading communities.”