Tokenized stocks can carry the same rights without the same trading protections

Tokenized stocks eligible for the SEC’s September exemption must carry equivalent shareholder rights, yet their trading venues can operate outside key Regulation NMS protections. Investors therefore need to examine both what the share represents and how their order is priced and handled.Market-data provider Douro Labs asked SEC staff in an October 9 submission for provider-neutral principles to assess external price feeds and use them for dollar reporting. Douro contributes to Pyth Network and develops and operates Pyth Pro, giving it a commercial interest in the standards under discussion.The order requires venue disclosures and safeguards. FINRA-member brokers retain applicable best-execution duties when they handle covered customer transactions.The September 17 order grants temporary, conditional relief from the definition of an exchange to venues offering permissioned automated market maker pools for eligible tokenized National Market System (NMS) stock. These pools use software to let approved participants trade against committed assets. The order also provides separate dealer-definition relief for certain liquidity providers using their own capital.Its scope is narrower than ...