May 7, 2023
Inveniam's comments on the proposed SEC safeguarding rule
Yesterday we submitted our comments on the proposed SEC safeguarding rule. This effort was led by the indefatigable Christos Polyzois. His work on Q53 on Atomic Settlement is a masterpiece. Quotes from our comments on Q53 below:
"We recommend defining atomic settlement of a business transaction as the indivisibly common fate of all its actions: inevitable eventual completion of all actions or inevitable eventual roll-back of any tentative actions.
From a practical standpoint:
In conclusion, indivisibility of trades is the property which reduces the opportunities for abuse of an investor’s assets, and it is also the property that atomic settlement provides. In light of this risk reduction and of the efficiency and speed benefits outlined above, we urge the Commission to promulgate rules and interpretations that expressly permit and encourage the use of blockchain for atomic settlement of trades. We further recommend that the Commission articulate safe harbors which enable parties to a transaction to avail themselves of atomic settlement in a way that they can be sure is compliant."
A number of people helped on this excellent project, Thank you Christos and to those who assisted him.