Blockchain-Powered Exchange BSTX Obtains Approval from SEC

On January 27, 2022, the U.S. Securities and Exchange Commission (SEC) issued an order approving the creation of BSTX as a trading facility of BOX Exchange. BSTX, a joint venture of tZERO Group, Inc., and BOX Digital Markets LLC ("BOX Digital") will be the first fully-automated, price/time priority execution exchange for trading securities that is both regulated by the SEC and leverages private blockchain technologies.

The highly-anticipated SEC approval provides substantial benefits to U.S. capital markets by offering:

• Shorter Settlements. BSTX is the first securities exchange to allow participants to choose accelerated settlement (i.e., T+0 or T+1) for transactions on the exchange. BSTX's approach is integrated with the accelerated clearance and settlement capabilities supported by NSCC and DTC.

• Proprietary Blockchain Data Feeds. Regarding trading activity on BSTX, BSTX will use a secure, private-permissioned blockchain that it controls to make participant market data available to them and to make general market data available to industry participants.

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 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.

Source: Finextra