FinTech Five

1. NYSE Files Immediately Effective Rule Change To Enable Trading of Securities in Tokenized Form

On April 17, the Securities and Exchange Commission (SEC) published with immediate effectiveness a New York Stock Exchange (NYSE) proposed rule change that permits the trading of securities on the exchange in tokenized form. Tokenization is treated as a post-trade settlement preference: Tokenized and traditional shares of the same eligible security trade on the same NYSE order book and with the same execution priority, but eligible member organizations may flag at order entry that the trade should be cleared and settled in tokenized form, with no need for a parallel venue, separate execution path, or bespoke exemptive relief. During the pilot period, the eligible universe is limited to Russell 1000 constituents and exchange-traded funds tracking major indices, member organizations bear sole responsibility for confirming their own and the security’s eligibility, and trades default to