NYSE Submits Rule Amendment Proposal to SEC, Aiming to Allow Tokenized Securities to Trade on the Exchange

Foresight News reports, according to the SEC website, the New York Stock Exchange (NYSE) submitted a rule amendment proposal to the SEC on April 9, proposing to add Rule 7.50, which would allow eligible member institutions to trade tokenized securities within the framework of the DTC three-year tokenization pilot program. This move aligns with a similar rule amendment by Nasdaq, which was approved by the SEC on March 18. According to the proposal, the scope of securities eligible for tokenized trading is limited to Russell 1000 Index constituents and ETFs tracking major indices. Tokenized securities must share the same CUSIP code and trading symbol as traditional securities and grant holders the same rights in order to trade alongside traditional securities within the same order book. The priority execution rules remain unchanged, and settlement will continue to follow the T+1 standard. NYSE stated that all existing regulatory rules will equally apply to tokenized securities, including short-selling rules, risk management, and market monitoring mechanisms. The overall framework does not require significant exemptions or parallel market structures.