The United States Securities and Exchange Commission is seeking more feedback and more time before it decides whether to approve the launch of the Boston Security Token Exchange (BSTX).
In a letter published on April 1, the regulator postponed the current April 2 deadline in light of responses to a recent proposed rule change to BSTX’s original filing.
The proposed exchange
BSTX is a project for a regulated security token exchange platform that would be jointly owned by Box Digital Markets and Overstock’s blockchain arm tZERO. As the SEC summarizes in its April 1 letter, the project proposes the operation of a platform using:
“A fully automated, price-time priority execution system to list and trade NMS stocks that meet BSTX listing standards and for which ancillary records of ownership reflecting certain end-of-day security token balances as reported by market participants would be created and maintained using distributed ledger technology.”
The SEC briefly outlined the results of the feedback it had solicited earlier this year on the BSTX application and subsequent amendments filed by Box and tZERO.
The two comment letters received had raised concerns that the platform could represent a “significant change for the equities market,” as well as noting the affiliation of the tZERO token with owners of the exchange, Overstock, and other entities. The relationships between these actors warrant further disclosure and analysis, the commentator had argued.
One of the letters also pointed to the 85% decrease in the token’s