SEC Releases FAQs on Innovation Exemption Related to Trading of Certain NMS Stocks
October 22, 2026
The staff in the SEC’s Division of Trading and Markets has released a series of
FAQs on its September 2026 order that grants “temporary, conditional exemptions to facilitate
the permissioned trading of tokenized NMS stock using innovative automated market makers
. . . and liquidity pools” (the Commission has described this SEC initiative as the
Innovation Exemption). Topics covered in the FAQs include:
- Requirements related to publishing a notice regarding an intention to operate as a tokenized securities venue (TSV) under the exemption, including when, where, and how the notice must be published.
- How TSVs that have published issuer notices would identify NMS stocks that have been “tokenized by third parties unaffiliated with the issuers of the underlying stock on the TSV” in situations in which the notice’s “30-calendar day objection period . . . has not yet elapsed.”
- A “list of persons” who have expressed their intent to operate as TSVs under the exemption.
- SEC resources that can be contacted for more information about the order.
For more information about the order, see Deloitte’s September 18, 2026, DART news item.