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U.Pastuor . S S. The New York Stock Exchange (NYSE) has formally approved a rule change proposal by Securities and Exchange Commission (SEC) that seeks to develop ‘tokenized securities’ trading mechanism for new rules. Paraphrasingr ’It is.
The proposal, outlined in document number 34-105260, is considered a critical step towards integrating traditional finance with blockchain technology.
Under the proposal, it says that the NYSE will introduce a new regulation called “Rule 7” in its proposed regulations. 50” – meaning eligible securities can be traded in both traditional and blockchain-based “tokenized” forms. This structure will be in the scope of DTC pilot program under Depository Trust & Clearing Corporation (DTCC) and is part of this framework.
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In the new system, tokenized securities will be issued with the same trading code (CUSIP) and ownership structure as traditional shares in exchange for a common stock. That means that the two forms will be completely fungible for full-time s. In addition to the matching engine side, tokenized assets will be subject to similar priority rules as traditional shares and are not at all disadvantaged in trading order.
Traders of markets can choose to have transactions executed on the blockchain using a “tokenization flag” that they may use when placing orders on behalf of their market participants. authorized custodian will handle technical and operational processes of .
But NYSE’s offer doesn’t only apply to the trading side alone, it isn’t just on the trade side. Also changing the rules of order queuing, routing and clearing are being made in the exchange as it seeks to integrate tokenized securities into its current market infrastructure.
*This is not investment advice.
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