Through a letter dated the 1st of April, the Securities and Exchange Commission, or SEC, gave out, the regulator stated that it would extend the timeline in regards to its review of the operations by a security token exchange, particularly one affiliated with tZERO.
Needing More Time To Review Proposal
In what’s assumed isn’t an April Fools joke, the SEC stated that it would seek further analysis and input when it comes to BOX Options Exchange’s proposal for rule changes. These changes were made in order to start its operations within the new Boston Security Token Exchange, or BSTX.
BSTX stands as a joint venture between tZERO and BOX, and had filed for rule change proposals last year. This filing went into detail of how its operations would be like within the exchange. In recent news, BOX had filed an amendment when it came to one of its proposals, which would increase the number of market makers within the exchange, as well as heightening its overall listing standards.
Requesting All Feedback
On the document, issued out on Wednesday, the SEC stated that it wants feedback, in particular. This feedback will be in regard to whether or not the proposed exchange’s operations are consistent with the Securities Act of 1934. Including this, it must also rule whether or not the information that BOX and tZERO had provided, will be sufficient to make an adequate ruling regarding its approval.
The Commission had warned the parties involved that, should these two issues not be adequately addressed, a lack of these two requirements are grounds for summary rejection.
Urged To Contact With Thoughts
Furthermore, third-party groups are capable of weighing in on the proposal itself. They can do this through the online platform, or by directly emailing the SEC, with the “File Number SR-BOX-2019-37” within the subject. As it stands now, these third party groups have three weeks’ time from the publication of the document itself within the Federal Register, to voice their initial thoughts. Another two weeks will be given to offering any rebuttal to another group’s comments.
The SEC asked that these comments will be in direct regards to the sufficiency of the proposed exchange’s statements in regards to supporting their proposal. Furthermore, the SEC stated that third-party groups could submit comments regarding the proposed rule change, and their thoughts about the matter as a whole.