The New York Stock Exchange (NYSE) has filed a proposal with the Securities and Exchange Commission (SEC) to introduce Rule 7.50, allowing member firms to trade tokenized securities. This move is part of the Depository Trust Company's (DTC) three-year tokenization pilot program. The proposal follows a similar rule change by Nasdaq, approved by the SEC in March.
Under the NYSE's proposal, tokenized securities eligible for trading will include components of the Russell 1000 Index and ETFs tracking major indices. These tokenized securities must maintain the same CUSIP code and trading symbol as their traditional counterparts, offering identical rights and co-trading on the same order book. The proposal ensures that existing regulatory rules, including short-selling and risk management, will apply to tokenized securities without requiring significant exemptions.
NYSE Proposes Rule Change to Trade Tokenized Securities
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