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Boston Options Exchange Gets SEC Approval

2 mins
Updated by Ryan James
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In Brief

  • The first blockchain-based national securities exchange has been given the green light from the SEC.
  • There will be a partnership between the Boston Options Exchange and tZero to operate the exchange.
  • This is an important moment, according to tZero Interim CEO Alan Konevsky.
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TZero is powering the new national securities exchange, the Boston Security Token Exchange, after waiting for approval for almost two years.

BSTX to add liquidity through partnership

Boston Security Token Exchange (BSTX) has been given permission by the Securities and Exchange Commission (SEC) to run a bourse and use blockchain for its settlements and market data. In addition, it will offer “several proprietary market data products,” not unlike those provided by other securities exchanges.

This is the first time the SEC has given the nod to a national blockchain-enabled securities exchange. The exchange will list companies that offer exchange-traded products. The blockchain product will try to settle transactions within two days and provide secure data feeds from the blockchain.

The Boston Options Exchange (BOX) and tZero will undertake the provision of the blockchain technology. TZero is a provider of liquidity for digital assets. They recently partnered with ROI group to issue digital securities in a luxury hotel and residential development in Dubai. The partnership helps investors access secondary liquidity for real estate on Tezos.

Watershed event, says tZero CEO

“This is a watershed event in the digital evolution of the securities markets and the trading experience,” said a member of the BSTX Board, Alan Konevsky, who is also the interim CEO of tZero.

He also said that tZero is committed to transforming legacy systems and pioneering new ways for securities and value to be custodial, transferred, and traded digitally. He also said that they are enthusiastic about using BSTX as a platform for a decent number of new products.

Companies will be able to unlock extra liquidity using new solutions meant to improve trading and democratize access to other companies and assets. BOX needs to join most market system plans connected to BSTX equities trading. These are the Consolidated Tape Association Plan, the Consolidated Quotation Plan, and the Nasdaq UTP Plan. BOX is also required to join the National Market System Plan.

In June 2018, tZero and BOX Digital made known a joint venture to construct the first compliant national securities exchange using blockchain technology.

The CEO is optimistic that BOX Digital’s know-how in building and operating a securities exchange and tZero’s blockchain technology will drive innovation.

tZero also partnered with EnergyFunders to digitize $25M of equity interest in the EnergyFunders Yield Fund I. This is built on the Ethereum blockchain using tZero’s smart contract technology.

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David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...