Openfinance Securities, LLC, the broker-dealer and ATS behind the Openfinance digital securities trading platform, announced on Friday that it has received approval for improved digital securities trading under its agreement to Membership with FINRA, building on recent SEC staff no-action letter offsetting Openfinance’s digital ATS business model The SEC no-action letter was released last month
No action letter clarifies digital security trading process SEC allows 3-step process as an alternative to a 4-step process which is said to « increase operational and settlement risks »
Openfinance says its approval comes after more than two years of working closely with the SEC and FINRA teams to support regulated digital securities trading in compliance with the law
« SEC No Action Letter released last month acknowledges the view held by Openfinance that a complex ‘four step’ process to guide brokers involved in the transfer of digital securities could create operational risks and unnecessary and unwanted settlement «
« The US financial industry has long been the global leader due to its combination of established regulatory protections for investors and the unparalleled capital that these protections attract. Openfinance has long believed that the path to the financial industry’s successful adoption of benefits of blockchain went through registered entities recognizing the unparalleled benefits provided by the regulated financial system of the United States »
« Openfinance was among the first participants in blockchain technology to recognize that seeking and obtaining regulatory approval was both a competitive advantage and the only sustainable path to critical mass in the US financial system.We are happy to work with groups that take this responsible approach as it rightly strengthens their credibility with US regulators who wield enormous power over participation in financial markets. »
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Security, alternative trading system, Financial Sector Regulatory Authority, FINRA, Finance
World news – United States – Openfinance Securities receives FINRA approval for placing update of the Digital Securities Alternative Trading System (ATS)
