SEC Gave Green Light To BSTX For Blockchain Settlement in the traditional market. The BSTX, a new facility of BOX has got regulatory permission to operate as a blockchain-based security exchange.
According to the latest updates finally, the United States and exchange commission (SEC) gave the green light to BSTX to work as a blockchain-based securities exchange.
The Boston Security Token Exchange(BSTX) is a new facility of Boston-based BOX exchange. It was a joint venture of tZERO and BOX digital which took place in June.2018. To establish the first- blockchain blended national security exchange.
Further, BSTX looking for permission for starting publicly-traded registered security tokens. So, this permission by SECenables BSTX to utilize the latest blockchain tech for faster settlements in traditional markets.
Word By SEC:
As per SEC,
“The Commission notes that the [BSTX] Exchange’s current proposal does not involve the trading of digital tokens and such a proposal, or any other additional use of blockchain technology.“
Previously, BSTX permission got refused by SEC, on providing Crypto- based services. The recent permission by SEC permits the facility to utilize a proprietary market data feed, BSTX market data blockchain.
How BSTX Would Facilitate Consumers After SEC Gave Green Light For Blockchain Tech :
Now BSTX will also utilize blockchain technology to support investors, to experience quick transaction times on a similar day (“T+0”), or the next day (“T+1”). Rather than the standard two business days(“T+2”) settlement cycle sported by the traditional market.
Further, with the regulatory permission depending on BSTX’s rule change proposals( (SR-BOX-2021-06). The SEC deposited four scenarios for BOX in line with BSTX’s functions.
Moreover, the requirement involves adding all related national market system methods connected to equities trading, certifying Regulatory Services Agreement with FINRA, Intermarket Surveillance Group membership for the BSTX facility, and an appropriate governance framework.
The News Source is Cointelegraph.
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