ChainThink reports that, according to the SEC website, the New York Stock Exchange (NYSE) submitted a rule change proposal to the SEC on April 9, seeking to add Rule 7.50 to permit eligible member firms to trade tokenized securities within the framework of the DTC’s three-year tokenization pilot program.
This application aligns with Nasdaq’s prior similar rule amendment, which was approved by the SEC on March 18. Under the proposal, the range of tradable tokenized securities is limited to components of the Russell 1000 Index and ETFs that track major indices.
Tokenized securities must share the same CUSIP code and trading symbol as traditional securities, grant holders identical rights, and be eligible for co-trading on the same order book, with unchanged priority rules and settlement still maintained at the T+1 standard.
The NYSE also stated that all existing regulatory rules will apply equally to tokenized securities, including short-selling rules, risk management, and market surveillance mechanisms, without the need for significant exemptions or parallel market structures.