As Originally Published on finance.yahoo.com
On May 30, 2019, Boston Security Token Exchange LLC (“BSTX”) filed with the Securities and Exchange Commission (“SEC”) the proposed rulebook for the first regulated security token exchange. BOX Exchange LLC (“BOX Exchange”), a national securities exchange registered with the SEC under Section 6 of the Securities Exchange Act of 1934, will operate and regulate BSTX as a facility of BOX Exchange.
BOX Digital Markets LLC (“BOX Digital”) and tZERO Group, Inc. (“tZERO”) announced the BSTX joint venture on June 19, 2018 to become the world’s first regulated exchange for trading security tokens. BSTX is based in Boston with Lisa Fall serving as the CEO. tZERO will manage ongoing technology implementation, administration, maintenance, and support. BOX Digital provides executive leadership and regulatory expertise. Additional information about BSTX can be found at http://bstx.com.
“For the last year, we have worked closely with our partners, tZERO, and in coordination with regulators in designing a framework for the secure and efficient trading of security tokens,” said Fall. “We believe the proposed rules provide a secure and regulated means for the trading of security tokens and we are excited to provide this new venue to market participants, pending regulatory approval.”
“The submission of the proposed rulebook is a significant milestone that will pave the way for the secure and efficient trading of security tokens on a regulated exchange,” said Susan Chamberlin, Chairman of BSTX. “There is no doubt that security tokens are the future of capital markets and we are excited to be working to continue to advance this evolution of the industry through creation and trading of blockchain-based tokenized securities.”
About BOX Digital:
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.boxoptions.com.
tZERO Group, Inc. (“tZERO”) is a majority owned subsidiary of Overstock.com, focusing on the development and commercialization of financial technology (FinTech) based on cryptographically-secured, decentralized ledgers – more commonly known as blockchain technologies. Since its inception, tZERO has pioneered the effort to bring greater efficiency and transparency to capital markets through the integration of blockchain technology.
tZERO is not a registered broker-dealer, funding portal, investment adviser or investment manager 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.