Security Token Exchanges 2021

The following is a list of exchanges where you can trade (buy and sell) security tokens primarily in Europe and North America. If you are an owner of STO, you can find an exchange for listing security tokens.

Note that this list is incomplete and that some of the services may not be fully operational as of yet. All information contained in the list has been obtained exclusively from publicly available sources (e.g. company websites, national authority registers, news articles, etc.).

Apart from the name, type and website of the STO exchange, the list provides information on the status and scope of regulatory approvals in the exchanges’ respective jurisdictions. Included you will also find links to the financial licenses of the respective STO exchange, the specific registered activities (e.g. brokerage services, operation of MTFs, etc.), permitted and/or targeted customers. Some STO exchanges have affiliate or subsidiary companies that have the appropriate financial licenses, these are also identified where such information is publicly available.

Generally, an STO exchange must obtain appropriate financial licenses in its jurisdiction (e.g. broker-dealer license in the US, investment firm license in the EU) and ensure that the scope of its activities complies with the authorised activities under its financial license.

Definitions

MIFID II – the Markets in Financial Instruments Directive II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry. With the recent proposed amendments, security token offerings will be falling under the definition of “financial instrument” and, thus, will be subject to regulatory protection afforded under MIFID II.

Multilateral Trading Facility – a multilateral trading facility (MTF) is a MIFID II term for a trading system that facilitates the exchange of financial instruments between multiple parties. Multilateral trading facilities allow eligible contract participants to gather and transfer a variety of securities, especially instruments that may not have an official market. These facilities are often electronic systems controlled by approved market operators or larger investment banks. Traders usually submit orders electronically, where a matching software engine pairs buyers with sellers, learn more here.

OTC Services – over-the-counter marketplaces in which market participants trade stocks, commodities, currencies, or other instruments directly between two parties and without a central exchange or broker.

DEX – decentralized exchanges allow for direct peer-to-peer transactions to take place online securely and without the need for an intermediary.

Investment Firm License – MIFID II covers all natural and legal persons who perform investment services and activities (e.g. advice, execution of orders, market making, operation of trading facilities, etc.) using financial instruments, as a regular occupation or business, and on professional basis. Where a person meets the criteria and is not otherwise exempt from MIFID II, it will require authorisation as an investment firm with its respective competent national authority.

STO Exchanges 2021 List Below