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BCH $194.77 -8.05%
LINK $7.87 -2.05%
HYPE $66.84 -6.19%
AAVE $73.17 -1.05%
SUI $0.7176 -5.72%
XLM $0.2263 -2.92%
ZEC $447.09 -6.54%

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Galaxy Research Director: SEC plans to abolish core rules of Reg NMS, which may clear obstacles for tokenized stocks and on-chain AMMs

Galaxy Research Director Alex Thorn posted that the U.S. Securities and Exchange Commission (SEC) plans to abolish Rule 611 "Order Protection Rule" and Rule 610(e) in the National Market System Regulation (Reg NMS), which could become an important turning point for the development of tokenized stocks.Thorn pointed out that Rule 611 requires trades to adhere to the best quotes across the entire market (NBBO), while AMMs cannot route orders in real-time, access low-latency market data, or pause trading due to better quotes existing on other exchanges. Therefore, it has long been difficult to meet regulatory requirements, becoming one of the main structural obstacles for tokenized U.S. stocks to land in the DeFi scenario. He stated that if the future replaces the regulatory requirements for trade-by-trade supervision with brokers' "best execution obligations," on-chain liquidity pools and AMM mechanisms will be more easily incorporated into the compliance framework.Although tokenized securities still face issues such as trading venue registration and clearing and settlement, the SEC's subsequent plan to introduce an "innovation exemption" mechanism is expected to further promote related developments. Thorn believes this is an important step for the SEC to implement the "Project Crypto" roadmap, paving the way for innovations in tokenized stocks, AMMs, and on-chain securities trading by removing key market structure barriers.

BIT adds Clear Street as a clearing partner, strengthening the infrastructure layout for U.S. stocks

As the scale of the U.S. stock business continues to grow, BIT (formerly Matrixport) has added U.S. institutional-level clearing service provider Clear Street as a partner, marking a higher standard of development in BIT's underlying infrastructure construction for U.S. stocks.BIT's U.S. stock business adopts an Omnibus IB structure, with all orders cleared and custodied by licensed clearing institutions based in the U.S. Currently, BIT has established partnerships with three licensed U.S. institutions: Clear Street, RQD Clearing, and Atomic Vaults Securities (AVS).Among them, Clear Street, supported by approximately $1 billion in financing and a strong capital base, processes about 550 million shares and approximately $28.4 billion in nominal trading volume daily, demonstrating the capability to serve large institutional clients with clearing and execution services. For users, this means that there is stronger institutional-level infrastructure support behind the transactions, resulting in a more stable system that is less prone to interruptions or delays during extreme market conditions, while also helping to provide more ample liquidity support and asset security guarantees.Compared to the industry’s common practice of using a single clearing partner, a multi-institutional parallel clearing structure can effectively disperse operational risks on the platform, enhancing the stability and continuity of transactions.BIT stated that in selecting clearing partners, the platform will continue to assess core indicators such as asset scale, net capital levels, and risk control capabilities to match the asset allocation needs of global users.
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