Overstock’s security token trading platform today said its retail broker-dealer subsidiary, tZERO Markets, is now open for business and has launched its web application.
tZero’s anticipated retail brokerage services include sales trading, electronic execution, and portfolio execution for buy- and sell-side clients. tZERO Markets, a wholly-owned subsidiary of tZERO, allows the firm to grab the capacity to serve retail traders instead of only accredited investors. Additionally, it provides token issuers with investment banking and placement agent services in connection with capital raising activities.
The launch comes a few weeks after the Financial Industry Regulatory Authority (FINRA) has approved the membership application of tZERO Markets which is also registered with the Securities and Exchange Commission (SEC).
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tZERO ATS Onboards Additional Broker-Dealers
tZero has been expanding its headcount as the firm was getting ready to sweeten its broker-dealer arm. tZERO anticipates trading more digital securities but says the addition of new assets have to carefully work through legal and financial due diligence, as well as regulatory matters to ensure that only high-quality assets trade on the tZERO ATS.
Explaining the quiet pace, it further states that while many issuers are intending to trade on the tZERO ATS, they are doing so in conjunction with a new capital raise. As such, the timing for when these new securities trade depends on broader corporate strategies, the speed of the capital raise process, and regulatory considerations.
“This is an important development for tZERO and its growing ecosystem. Now that tZERO Markets is live, it will provide its customers with a superior experience for onboarding and trading digital securities. While the initial release has significant improvements over existing experiences, it will get considerably better in the coming weeks and months ahead,” said tZERO CEO, Saum Noursalehi.
Many Fintech and blockchain firms have responded to US regulators’ classification of certain digital tokens as securities and therefore coming under the SEC’s supervision. Wall Street’s top watchdog says that any entity that wants to become an ATS needs to register with the SEC as a broker-dealer and become a member of a self-regulating organization, such as FINRA.