Formation Securities files an SEC notice for a Solana venue

Formation Securities LLC has put a Solana venue on the SEC's notice list. On November 9, 2026 the firm published a public notice of a tokenised securities venue in National Market System (NMS) stock, and its release said trading is expected in early 2027. The SEC Innovation Exemption page lists Formation Securities LLC on that date. It is not a finding that the filer meets the definition of a Tokenized Securities Venue, and staff do not pass on the merits or accuracy of the notice.

The November 9 notice names three launch stocks: Exodus Movement (NYSE: EXOD), Forward Industries (NASDAQ: FWDI) and Galaxy Digital (NASDAQ: GLXY). It restates the September 17, 2026 order, Release 34-106402: 75 symbols and 0.25% of prior-month average daily volume for Limit Up-Limit Down Tier 1, and 250 symbols and 2.5% for Tier 2. A three-name book sits inside the symbol ceiling the exemption already sets out. The early 2027 window still turns on issuer process, because third-party names stay held back until the issuer-notice period ends with the issuer still silent.

Christopher Montagano, president of Formation Securities, put issuers at the centre. "Tokenized stocks will succeed only if public companies see the value in them, and we intend to build this market together with issuers," he said in the November 9 release. Before admission, the venue is to check equal rights with the equivalent NMS stock, including dividends, voting and a one-for-one backing. The November 9 notice records that the venue has received no Notice of Issuer Objection.

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What the venue says it will run

Formation is a Delaware limited liability company and a wholly owned subsidiary of Valcrest Inc, a Delaware corporation. Trading is meant to run through permissioned automated market maker (AMM) liquidity pools on Solana, on a licensed concentrated-liquidity AMM from Orca Management Company SA and a licensed Formation Router. The notice states that neither Formation nor the venue is registered with the SEC for these activities, and that the venue will operate outside an order book and outside custody of participant assets or private keys.

Hours run 24 hours a day, seven days a week, with stoppages that track the primary listing exchange, including Limit Up-Limit Down pauses. Pool prices come from the AMM formula rather than from a pricing oracle, and trades settle atomically on Solana under off-chain governance by Formation's board.

Who is expected on the other side

The release, separate from the notice, says Superstate and Securitize are expected to supply the shares. Carlos Domingo, chief executive of Securitize, said its Convertible Entitlement Tokens are backed by a share at its broker-dealer, carry the same rights, and are limited to verified investors. Robert Leshner, co-founder and chief executive of Superstate, said the exemption lets the companies Superstate works with trade around the clock on Formation Securities. Expected access runs through the Formation platform, Alpaca, Passage by CoinList, Anchorage Digital Bank NA, BitGo Bank & Trust, National Association, Fireblocks, Jito's JTX, Solflare and Squads.

Predicate (Heimdall Labs) handles identity checks, TRM Labs wallet screening, Solidus Labs surveillance and Sec3 (Coderrect) contract review, while Orca licences the AMM and the router. The notice says Certora has formally verified Orca's AMM software, which has also undergone 11 audits. Allowlisting follows know-your-customer checks, Office of Foreign Assets Control screening and tokeniser approval. Wallet eligibility at the point of trade is the screen the notice puts on both the venue and the tokeniser.

Staff frequently asked questions require the public notice at least 30 calendar days before operations, with an email to the Commission within one business day. The September 17 order, Release 2026-90, gives qualifying venues five years of temporary relief from the Securities Exchange Act of 1934 definition of exchange for these permissioned pools. Formation's release calls the plan the first tokenised securities venue on Solana. The November 9 event is an SEC notice and a list entry.

If that notice starts the 30-day clock, the minimum wait is shorter than the early 2027 horizon the company has given. EXOD, FWDI and GLXY are the names Superstate and Securitize expect to bring, so each issuer can object, and any added stock needs a refreshed notice. The shareholder record stays with the transfer agent, as in other issuer-sponsored token work on the share register, while another listed firm has agreed an optional token path beside the cash share. Issuer responses and deployed contract addresses are the test of whether early 2027 becomes an operating venue.

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