SEC’s Selway puts tokenized securities in 24/7 market debate

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SEC trading and markets director Jamie Selway has pointed to tokenized securities and 24/7 trading as examples of changing financial markets, while describing efforts to use “super intelligence” in research during Nov. 13 remarks.

Summary

Selway discussed tokenized securities and perpetual futures at a Baruch College market structure conference.
The SEC’s chief economist is leading work on research tools and renewed academic engagement.
Four operators have submitted notices under the agency’s conditional exemption for tokenized securities venues.
Treasury clearing compliance dates fall on Dec. 31, 2026, and June 30, 2027.

SEC Division of Trading and Markets director Jamie Selway, speaking at Baruch College in New York, described markets moving toward continuous trading as new investment products arrive. His remarks placed tokenized securities and perpetual futures alongside Treasury clearing reforms and proposals affecting the National Market System.

SEC research faces growing demands from market data

“Trading is going 24×7,” Selway said, identifying new ways for investors to gain market exposure among the subjects available for research.

Access to distinctive data once constrained original research, he explained. Handling ever-growing datasets now requires substantial resources, with researchers turning to tools driven by what he called “super intelligence.”

Josh White, the SEC’s chief economist and director of the Division of Economic and Risk Analysis, is leading the agency’s work in that area, according to the speech. White has restarted DERA’s Distinguished Visiting Scholars Program as part of renewed engagement with academics.

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Tokenized stock venues must meet notice requirements

The SEC’s venue register lists four operators that have submitted notices of their intention to use its Innovation Exemption: TSV LLC, OKXICE TSV, Kephas Corporation doing business as Perpetuals.com, and Formation Securities.

Their submission dates run from Sept. 23 to Nov. 9. The register says inclusion does not establish that an operator qualifies as a tokenized securities venue or satisfies the exemption’s conditions.

Operators must publish a public notice at least 30 calendar days before starting operations. Within one business day of publication, they must separately notify the SEC, providing contact information and the notice’s location.

As crypto.news previously reported, Formation has proposed 24/7 stock trading on Solana, with an expected launch in early 2027. Exodus Movement, Forward Industries and Galaxy Digital are expected to be among its initial securities.

In its Nov. 9 company announcement, Formation said access would be limited to verified participants. Its proposed model uses permissioned automated market maker pools, with limits on securities and trading volumes, public disclosures, and customer diligence requirements.

Formation licenses trading technology from Orca and plans to work with Superstate and Securitize. The company traced the project to Project Open, a proposal submitted to the SEC’s Crypto Task Force in April 2025 by a coalition including Orca, Superstate and the Solana Policy Institute.

Issuers and exchanges are building different trading arrangements

Canton Strategic announced completed tokenized stock trades on Nov. 4. Five North sold its issuer-sponsored shares to DRW Cumberland, with Flowdesk supplying liquidity through Tradecraft’s permissioned pool on TSV LLC.

Fairmint, an SEC-registered transfer agent, moved the shares from a conventional brokerage account to Five North’s verified wallet and recorded ownership on the Canton Network. The company did not disclose the number of shares traded, execution prices, or total transaction value.

NYSE’s proposed venue remains subject to regulatory approval. In a Nov. 2 announcement, the exchange named Broadridge, Computershare, Equiniti and Superstate as new transfer-agent partners, joining Securitize and tZERO.

According to NYSE, its design combines the Pillar matching engine with blockchain-based post-trade systems. Planned features include continuous trading, instant settlement, dollar-sized orders and stablecoin funding, with multiple chains supported for settlement and custody.

The exchange said the venue would accommodate issuer-sponsored securities and third-party custodial tokens, preserving dividends and governance rights. Access would run through participating broker-dealers.

Treasury clearing deadlines arrive in two stages

The SEC’s implementation guidance sets Dec. 31, 2026, as the compliance date for eligible cash Treasury transactions. Eligible repurchase agreement transactions follow on June 30, 2027.

Both dates reflect a one-year extension of the original schedule. Adopted in December 2023, the rules require covered clearing agencies to maintain procedures requiring direct participants to centrally clear eligible secondary-market Treasury transactions to which they are counterparties.

The agency has issued relief covering certain inter-affiliate and non-U.S. repo transactions. Its staff guidance addresses general collateral repos, circumstances where a Treasury clearing agency is unavailable, and transactions that fail to transfer to the clearinghouse.

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