The US securities regulatory body issued a notice on Boston Options Exchange’s (BOX) request to give stock trading reports, being a proposed additional service the exchange wants to offer its clients. In a detailed notice with various authorities that backed the SEC’s decline of the request, BOX will not be embarking on its early plans to offer such services.
The TMX group created the trading platform in 2002, but it started functioning correctly two years after. The exchange gave a more comprehensive range of options to the market, being the main reason for its creation. BOX exchange took on particular services like price improvement to provide users a more affordable service.
SEC disapproves BOX’s request
The regulatory body explained that the options exchange’s request fell through. SEC has been on numerous financial news lately for its lawsuit against cryptocurrency giant XRP. The governmental agency accused the Ripple team’s executives of not registering the tokens as securities, thereby depriving investors of some rights and information on their investment.
The BOX exchange wants to offer stock trade reporting on the Ethereum blockchain and requested the US body to change its earlier stance. SEC’s reply has some legislation that stood against the exchange’s wish, denying it added the service. The National Market System used Boston Options Exchange’s forum called the Security Token Exchange to perform its new activities. BOX’s first draft was to have been sent in February.
Still, the proposal faced various amendments before being sent to the Security and Exchange Commission because of regulations that contradict its stance. The BOX has a partnership with the tZero group to launch a token called the Security Token Offering, strictly for security purposes two years ago. The exchange passed through numerous aspects of the offering to assure its success.
Ethereum Blockchain for stock trade reporting
The Ethereum blockchain is popular within the crypto space, especially since it is a worthy competitor against the largest cryptocurrency in the world, Bitcoin. The company requested the Ethereum blockchain’s use on its daily securities balance accounting to ensure robust technological backing.
SEC pointed out that the firm did not show how it would comply with the Ethereum blockchain, being the proposal’s major weakness. The SEC body has specific legislation that guides every movement of the securities body. Exchanges and firms voiced their opinion concerning the time-wasting and tiring process with the Securities regulatory body.
The regulatory agency is worried about the havoc of wrong information filed on the blockchain, which might wreak havoc on the stock trade reporting. The Security token explained that it wants to use the Omnibus wallets for data outside the exchange, being a source of concern to the body.
The body opined that the transaction data were not staying up to date. BOX exchange will look through SEC’s response and why it did not approve the proposal is filed. The firm will then explicitly amend some unclear parts or not well explained to assure its request on stock trade reporting, which could significantly benefit users.
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