KDX and the NXT consortium filed an application for final approval for the "fractional investment over-the-counter exchange," kicking off full-fledged preparations to open.
According to the securities industry on the 10th, the NXT consortium and KDX submitted their application documents for final approval as an operator of the fractional investment over-the-counter exchange to the Financial Services Commission that day.
Earlier, the financial authorities began the preliminary approval process in Oct. last year and in Feb. this year selected the NXT consortium and KDX as preliminary operators.
Final approval is a process to check whether the business plan submitted at the time of preliminary approval has been carried out and whether the human and physical requirements necessary to actually run the business are met. The stability of the trading system and operating capabilities are expected to be key review items.
The financial authorities will review the application documents, conduct on-site inspections, and carry out external evaluations, then decide whether to grant final approval at regular meetings of the Securities and Futures Commission and the Financial Services Commission.
The task after the exchange opens is a competitive initial product lineup. For now, products that can be traded on the fractional investment over-the-counter exchange are limited to existing electronically registered revenue securities issued by placing assets such as real estate and music royalties in trust.
If, after the security token offerings (STOs) law takes effect in Feb. next year, the scope of tradable assets expands to include revenue securities and investment contract securities issued on a distributed ledger, the role and scalability of the over-the-counter exchange could grow.