tZERO Is Committed to Providing Liquidity for Companies Impacted by the SEC Rule That Heightens Eligibility Requirements for Companies that Trade on the Over-The-Counter Market

tZERO, a leader in blockchain innovation and liquidity for digital assets, announced today that the regulated tZERO alternative trading system (ATS) is committed to working with private companies impacted by the SEC’s Rule 15c2-11 amendments that are seeking continuous, public market-like access to liquidity. The tZERO ATS is an organized and automated securities marketplace, enabling private companies the opportunity to provide valuable liquidity to their existing shareholders and retail investors the ability to invest in these private assets, utilizing the latest digital technology.

In late 2020, the SEC amended its Exchange Act Rule 15c2-11, with an effective date of September 28, 2021, to heighten eligibility requirements for companies that trade on the over-the-counter (OTC) market. In particular, the amendments require these issuers to maintain stricter disclosure standards — companies with limited or out-of-date information will lose ability to have public quotes in their securities. This means that these issuers and, most importantly, their investors are likely to lose access to transparent trading environments unless the issuers take steps to provide appropriate disclosure to the market and access an automated, organized liquidity venue like tZERO ATS.

These amendments are intended to protect investors and increase their access to information, a development that tZERO supports. tZERO is open to working with private companies that are seeking a compliant trading venue for their privately issued securities as this regulatory landscape evolves.

tZERO CEO Saum Noursalehi stated, “At tZERO, we are committed to working with private companies that meet our trading requirements and are seeking a compliant trading venue for their privately issued securities. American Films (Pink Sheets: AMFL) recently announced its plans to trade on the tZERO ATS, paving the way in maintaining access to secondary liquidity. Our revolutionary blockchain-based platform offers a leading regulatory-compliant, continuous, and automated trading environment for private market assets in the U.S.”

Established in 2003, tZERO ATS operates the tZERO ATS, an SEC-regulated ATS that facilitates the trading of digital securities. tZERO ATS pioneered the first reported trade of a blockchain-based security in 2016 and, since January 2019, it facilitates secondary trading of digital securities, transacting hundreds of thousands of shares per month and is growing rapidly. While this volume may be a fraction of what is transacted in the traditional world, it is a major and positive trend in this growing ecosystem. In Q3 2020, tZERO ATS recorded $39M of digital security trade volume, nearly a 20x increase compared to the $2M achieved in Q3 2019. The assets on tZERO ATS represent nearly 75% of all digital security value and are responsible for approximately 95% of dollar trading volumes globally.

Private companies that are interested in a compliant trading venue for their privately issued securities are encouraged to reach out to [email protected] for more information.




About tZERO

tZERO Group, Inc. (tZERO) and its broker-dealer subsidiaries provide an innovative liquidity platform for private companies and assets. We offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, and trade on a regulated alternative trading system. tZERO, through its broker-dealer subsidiaries, democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. For more information on tZERO, please visit https://www.tzero.com/.

tZERO is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage services. tZERO takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions.

About tZERO ATS

tZERO ATS, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. More information about tZERO ATS may be found at https://brokercheck.finra.org/. Digital securities that trade on tZERO ATS are conventional uncertificated securities. Ownership of such securities is reflected on the traditional books and records of regulated market participants. The term "digital" refers to the blockchain technology elements of a security that are intended to enhance investor experience through added transparency.

Investor Notice

Investors should note that trading securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, no assurance of liquidity, which could impact the price and ability to sell, and possible loss of principal invested. Further, an investment in single security could mean lack of diversification and, consequently, higher risk. Potential investors are urged to consult a professional adviser regarding any economic, tax, legal or other consequences of trading any securities as described herein.

No Offer, Solicitation, Investment Advice or Recommendations

This release is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by tZERO or any of its affiliates, subsidiaries, officers, directors or employees. No reference to any specific security constitutes a recommendation to buy, sell, or hold that security or any other security. Nothing in this release shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this release constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this release should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this release, we have not taken into account the investment needs, objectives, and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this release by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible corrections. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Forward-Looking Statements

This release contains forward-looking statements. In addition, from time to time, tZERO, its subsidiaries, or its representatives may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which is derived from currently available information. Such forward-looking statements relate to future events or future performance, including financial performance and projections; growth in revenue and earnings; and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including, without limitation: the ability of tZERO and its subsidiaries to change the direction; tZERO’s ability to keep pace with new technology and changing market needs; and competition. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or their respective representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions. tZERO, its subsidiaries, and its representatives are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or its representatives might not occur.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005245/en/