Templum and Miami International Holdings Partner to Launch an SEC-Regulated Digital Securities Exchange
Blockchain, Business

Templum and Miami International Holdings Partner to Launch an SEC-Regulated Digital Securities Exchange

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As of April 4th 2019, Templum and Miami International Holdings Inc. (MIH) have partnered to launch a joint venture featuring a fully regulated digital securities exchange. The exchange will be SEC-registered, owned by MIH, and is currently pending SEC approval.


Templum and Miami International Holdings’ (MIH) Partnership Explained

Templum Markets LLC— the wholly owned subsidiary of Templum Inc.— is a registered broker-dealer with the United States Securities and Exchange Commision (SEC) and the Financial Industry Regulatory Authority (FINRA).

Templum Markets operates an Alternative Trading System (ATS) for the secondary trading of ‘digital securities’— a term synonymous to ‘security tokens’.

The enterprise has raised more than $12 million throughout two funding rounds.

Now, Templum has partnered with Miami International Holdings (MIH) to expand into the public sector.

Per the terms of agreement, Templum and MIH will develop a fully regulated exchange to list and trade digital securities. The joint venture will be SEC-registered and will operate as a facility of an exchange owned by MIH.

The exchange is currently awaiting SEC approval.

MIH is the parent holding company of the MIAX Options, MIAX PEARL, and MIAX Emerald options exchanges, which collectively comprise the MIAX Exchange Group.

To put the partnership into context, MIAX Options currently lists and trades options on approximately 2,800 multi-listed classes, with a throughput of around 38 million quotes per second.

According to MIH CEO Thomas P. Gallagher,

“We are excited to be partnering with Templum to launch an SEC-regulated digital securities exchange. Templum is a highly recognized name in the emerging digital securities sector, and we are confident that together with MIH’s exchange operation success, this partnership will result in a reliable platform that will protect investors and ensure orderly and efficient markets for digital securities.”   

Templum CEO Christopher Pallotta also commented on the news:

“MIH boasts an amazing industry pedigree and the MIAX Exchanges have a proven track record. Templum is honored to be recognized and selected by MIH to jointly build a public exchange for digital securities. With our expertise in creating the premier marketplace for digital securities and MIH’s expertise in operating exchanges, we believe that this partnership will advance digital securities and bring greater efficiencies to the market.”  

Templum’s Recent Development in the Security Token Space Explained

In December 2018, Templum formally requested clarity from the SEC regarding the clearing and settlement of tokenized securities.

Later, in February 2019, Templum announced a transition from Ethereum to a Symbiont-built private blockchain for Security Token Offerings (STOs). The switch was primarily a result of Ethereum’s scalability issues, where the network can potentially slow down during high volume transactions.

Now, Templum aims to become a frontrunner of the quickly developing security token industry.

Two SEC-regulated security token trading platforms are currently live in the United States— tZERO and OpenFinance Network.

What do you think of Templum and Miami International Holdings (MIH) partnering to launch an SEC-regulated digital securities exchange? We want to know what you think in the comments section below.


Image courtesy of Templum Inc.

April 5, 2019

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Tim Fries Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions (IoT).