On Friday December 18, 2020, the U.S. Securities and Exchange Commission (“SEC”) published an order disapproving the rulebook filing by the Boston Security Token Exchange LLC (“BSTX”). The filing proposed to adopt rules governing the trading of digital securities through BSTX as a facility of BOX Exchange, LLC (“BOX Exchange”).
“Although it is not the decision we were looking for, I am glad to see the SEC reiterate support for innovation and the application of beneficial technologies in the securities markets,” said BSTX CEO Lisa Fall. “We are reviewing the order to determine what additional clarity and detail can be added to the filing to address the issues raised. We remain committed to providing a regulated venue to trade digital securities and look forward to working with the SEC to achieve our goal.”
In May of 2020, BSTX refiled the proposed rulebook for the trading of security tokens on a regulated exchange, which was then published by the SEC and opened to the public for comments. BSTX is actively evaluating the questions raised by the SEC order and planning next steps, including, but not limited to, promptly updating and refiling the rulebook.
BSTX is a joint venture between tZERO and BOX Digital Markets LLC that is designing a fully regulated digital securities exchange.
BSTX is designing the world’s first regulated exchange for trading digital securities. BOX Exchange is a national securities exchange registered with the SEC under Section 6 of the Securities Exchange Act of 1934 and will operate and regulate BSTX as a facility of BOX Exchange. For more information on BSTX, visit: http://bstx.com.
BOX Digital Markets LLC is engaged in creating and developing markets for trading digital assets in a regulated environment. BOX Digital is a subsidiary of BOX Holdings Group LLC, which owns and operates BOX Options Market LLC, an equity options marketplace and a facility of BOX Exchange. Additional information about BOX Market and BOX Exchange can be found at http://www.boxexchange.com.
tZERO Group, Inc. and its broker-dealer subsidiaries (“tZERO”) provide an innovative liquidity platform for private companies and assets. We offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, and trade on a regulated alternative trading system. tZERO democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. For more information on tZERO, please visit https://www.tzero.com/.
tZERO is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage services. tZERO takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and, at no time, has possession of investor funds or securities in connection with such transactions.
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