The Securities and Exchange Commission (SEC) disapproved a proposed rule change by BOX Exchange LLC to establish the Boston Security Token Exchange LLC as a facility for trading securities. This decision was made because the related BSTX Trading Rules Proposal, which outlined how trading would occur and how the exchange would regulate it, was also disapproved. The SEC found that without these approved trading rules, BOX Exchange could not ensure the proposed exchange would operate in a manner consistent with the Exchange Act. Consequently, the proposed rule change did not meet the regulatory requirements set forth by the Exchange Act.
Simple Explanation
The SEC told a company that they can't start a new type of business for trading because they didn't follow all the important rules they needed to. Without following these rules, the SEC said the company couldn't make sure everything would be fair and safe.