Bittrex Partners with Rialto Trading, a U.S.-registered Alternative Trading System (ATS)

  • U.S-based crypto asset exchange Bittrex announced a partnership with Rialto Trading, to jointly provide a digital securities trading platform
  • Through this extended platform, Rialto Trading’s ATS operations will expand beyond fixed income products into blockchain-based securities

Yesterday, U.S-based cryptocurrency exchange Bittrex announced a partnership with Rialto Trading, a U.S.-registered Alternative Trading System (ATS), to jointly provide a digital securities trading platform. Through this partnership, Rialto Trading’s ATS operations will expand beyond fixed income products into blockchain-based securities.

According to the official press release published by Bittrex, both companies plan to combine their specializations that will leverage Bittrex’s knowledge in blockchain technology, cybersecurity, and cryptocurrency trading with Rialto’s licensed broker-dealer ATS and securities industry experience. Together they aim to offer a regulated trading platform for digital securities. Shari Noonan, CEO of Rialto Trading stated:

We are excited to share Rialto’s expertise in building networks and trading solutions in the regulated securities industry to develop this new venture in partnership with Bittrex. By working together, we’ll be able to expand our current client offerings to not only include digital securities, but also provide them access to a globally advanced and reliable trading platform.

Shari Noonan

ATS for Blockchain-Based Digital Securities

The extended ATS platform will be available for institutional investors, corporations, U.S.-registered broker-dealers and accredited investors that have either an annual income of at least $200,000 or a net worth of over $1,000,000. The ATS will support USD trading for the digital securities and has already captured the interest of some of Rialto’s institutional clients. Shari Noonan told Reuters:

“We have seen interest from most of our large institutional clients that are trading our fixed income products.”

Shari Noonan

The new partnership will not only see Rialto Trading expand beyond fixed income products into cryptocurrency securities, it will also position the company to provide additional services to the digital asset securities ecosystem, including advisory services, placement, trading and custody.

While an approval from the regulatory entities is still pending, talks with the agencies are already taking place from both companies and institutional investors, accredited investors, corporations and U.S.-registered broker-dealers can contact Rialto Trading to pre-register an account. Issuers can also contact the company to start the listing process.

Bittrex Forearming to ICO/Tokens Regulations

Many see the move by Bittrex and Rialto Trading as an important step forward in establishing trust in the cryptocurrency market for traditional investors. The new trading platform will allow investors to trade crypto assets in a safe and compliant manner.

Last year, Bittrex replied to a SEC Digital Asset Investigative Report stating their adherence to SEC and CFTC related laws and regulation as well as their compliance efforts through partnerships with the likes Perkins Coie and Delta Strategy Group. Bittrex also noted that they serve on the Executive Committee of the Chamber of Digital Commerce and regularly meet with regulators and legislators to provide them with information regarding the cryptocurrency space.

In the aftermath of the recent hype surrounding ICOs and the regulatory scrutiny that followed, Bittrex seems to have remained focused on self-regulation, as well as providing tools that facilitate compliant trading activities.

Brazil’s Securities Watchdog Blocks Binance From Offering Derivatives

  • Brazil's SEC has blocked Binance from offering derivatives products in the country.
  • Brazilian regulators ruled that derivative contracts are securities, regardless of whether they involve crypto-assets. 

Brazil’s equivalent of the U.S. Securities and Exchange Commission, the Comissão de Valores Mobiliários (CVM), has blocked leading cryptocurrency exchange Binance from offering derivative products in the country. 

According to an order published July 6, reported on by local news outlet Portal do Bitcoin, Brazilian regulators claimed derivative contracts are securities, regardless of whether the underlying assets are cryptocurrencies. 

The order reads, 

It remains evident that there are indications that the company BINANCE FUTURES, through the page '"" on the world wide web, captures customers residing in Brazil with a public offering of derivative intermediation services.

The order continued, adding that Binance “does not hold authorization” to act as an intermediary for securities in the country. 

The CVM determined that Binance must immediately suspend the “broadcasting of any public offering of securities intermediation services,” including derivatives products or else face a daily fine of R $1,000 ($186). 

The order fails to clarify whether Binance’s spot trading services will continue to be allowed to operate in Brazil, as opposed to only banning their derivative offerings. 

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