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BSTX (Boston Security Token Exchange)
BSTX logo.jpg
Founded 2018
Headquarters Boston, Massachusetts
Key People Lisa J. Fall, CEO; William Easley
Website BSTX Home
Releases Company News

BSTX (Boston Security Token Exchange), which is jointly owned by BOX Digital Markets LLC and tZERO, is a nascent stock market for tokenized securities whose proposed operation was rejected by the U.S. Securities and Exchange Commission (SEC).[1]


BOX Digital Markets is an affiliate of BOX Exchange. BSTX will operate as a facility of BOX Options Exchange. tZERO, a subsidiary of, began operating an alternative trading system or ATS for its own tokenized securities in 2019.

BOX provides strategic leadership and regulatory advice to BSTX and tZERO manages technology, administration, maintenance, and support.[2] TZERO operates its own registered alternative trading system (ATS) for security tokens, access to which is limited by its regulatory status.

Trading proposal

On September 27, 2019 BOX Exchange filed proposed changes to its options exchange rules with the SEC to permit it to list equity securities. In its request for comments on the proposal that the agency published on October 11, 2019 the SEC characterized the BSTX proposal saying, ". . . BSTX would operate a fully automated, price/time priority execution system for the trading of “security tokens,” which would be equity securities that meet BSTX listing standards and for which ancillary records of ownership would be able to be created and maintained using distributed ledger (or “blockchain”) technology."[3] The SEC published revisions to BSTX's proposed rulebook on February 28, 2020.[4]

SEC disapproval

On December 28, 2020, the SEC published in the Federal Register its order disapproving the rule change. The commission said that, among other things, the proposed design would lead to inaccurate public reporting of transactions. The commission also complained that the materials submitted by the exchange did not contain sufficient information about the workings of the systems for the commission to assess the proposal fully. The order also indicates that there had been a number of interactions between the SEC and BSTX which failed to resolve the SEC's issues.[5]