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OKXICE to launch 24/7 trading in tokenized US securities
OKXICE, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange, plans to launch round-the-clock trading in tokenised US securities on 23 November. The move could extend trading hours and speed up settlement, as advocates say tokenisation may improve liquidity and reduce costs.
The platform is set to start with more than 70 assets, including tokenised shares of Coinbase, Circle and Robinhood, plus 59 Direxion exchange-traded funds. OKXICE filed with the US Securities and Exchange Commission in October, and the launch follows the SEC’s September exemptions for platforms trading tokenised stocks with the same rights as the underlying securities. More than a dozen US companies have objected to OKXICE offering tokenised versions of their shares.
In short
- OKXICE plans 24/7 trading in tokenised US securities from 23 November.
- The platform will initially offer more than 70 assets.
- More than a dozen US companies have objected to the share tokens.
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The case for
Round-the-clock trading in tokenised securities could make markets more accessible to people in different time zones and give investors more flexibility over when to trade. Supporters argue that faster settlement and shared digital records could improve liquidity and reduce some transaction costs, while retaining the rights attached to the underlying shares.
The case against
Companies that object may reasonably worry that tokenised versions of their shares could be traded without their consent or in ways that confuse investors about ownership and shareholder rights. Critics could also question whether continuous trading and new settlement arrangements offer enough safeguards for liquidity, market stability and investor protection.
Explained simply
Tokenisation means creating a digital record of an asset on a blockchain, a shared online ledger. A tokenised share represents a company share, while an exchange-traded fund (ETF) holds a basket of investments; Direxion offers funds designed to track or magnify market movements.
OKXICE is a venture between OKX, a cryptocurrency exchange, and Intercontinental Exchange, which operates major financial markets. Its plan concerns trading US securities outside the limited hours of conventional stock markets, with supporters saying digital systems could make trading and settlement faster and less costly.
US securities rules govern how shares and funds are offered and traded. The US Securities and Exchange Commission oversees those rules, and companies whose shares may be represented by tokens have raised objections to the proposed service.