SEC approves NYSE rule change for stock token pilot program

The U.S. Securities and Exchange Commission (SEC) has announced that a rule amendment submitted by the New York Stock Exchange (NYSE) regarding stock tokens has officially taken effect. The NYSE filed the rule change application on May 1, with the SEC publishing the relevant documents on May 12. Under the new rules, institutions qualified by the Depository Trust & Clearing Corporation (DTCC) for its pilot program can trade stock and ETF tokens using blockchain technology. The scope of tokenization is limited to components of the Russell 1000 index and ETFs tracking major indices. The traded stock and ETF tokens will share the same tickers as the underlying securities and will have identical shareholder rights, dividends, trading priorities, and fee structures. The DTCC's pilot program for these tokens will run for three years. The corporation had previously announced plans to begin trading the tokens in July and launch an expanded platform in October.