BSTX (Boston Security Token Exchange) has sought approval from the SEC (Securities and Exchange Commission) of the US to unveil a market for registered and publicly traded security tokens. It is important to note that BSTX is co-owned by Overstock’s blockchain division tZERO and BOX Digital Markets.
The Commission on October 11, 2019, released a rule change proposal in which BOX has asked the SEC to support rules governing the equity securities trading on the exchange that would be operating a price/time precedence implementation system, thoroughly automated in nature, for security tokens’ trading.
The records of ownership would be stored on the blockchain of Ethereum, revealed the proposal. Moreover, these records will be updated every day as each trading day ends. Other than that, the ownership records of market participants would also be maintained. The exchange is slated to be operating from 9:30 in the morning to 4 o’clock in the evening as per the EST.
Apart from that, the company indicated having its own standards for listing on the exchange. That means only the tokens that meet these established standards would find themselves listed on it. In addition to that, the proposal which is 129-page long, also offered insights on how the exchange might run along with how the operational rules would require changes. As per the filing, the platform’s listed tokens are required to have a value of at least $0.01.
According to the application, the service would only be accessible by those Ethereum addresses that are whitelisted. That means, BSTX, along with the firm’s authorized operators known as wallet managers, will enjoy the access.
What’s more, is that there is a need for the listed tokens to be in compliance with the ERC20 standards. There would also be additional security features along with 3 smart contracts for tracking the whitelisted addresses, regulation compliance, and ownership.