FINRA has revealed the inner workings of its best execution regulations by incorporating onchain reality. As a reaction to “Regulatory Notice 26-15”, Securitize and Douro Labs filed a joint letter pointing out how Rule 5310 must deal with tokenized securities settling automatically through public blockchains. This marks the first official kind of invitation.
What Securitize and Douro Proposed
The letter is the very first official document on best execution of tokenized securities executing onchain. It calls on FINRA to update regulations for markets that trade 24/7, settle immediately, and route across different venues.
The proposed solutions include price per specific order, trustworthy onchain reference price, integration of gas fees and prefunding costs into total cost analysis, cross-market routing, execution-quality reviews, and investor-directed slippage protection.
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MEV, Gas and Settlement Change the Game
The US Regulation National Market System (NMS) best execution considers price, speed and cost.The blockchain introduces new variables.MEV (mining the blockchain) may reorder transactions or extract values, gas costs vary block by block, and atomic settlement brings execution and clearing together.
Source: X
Tokenized securities have a market capital of more than $14 billion per RWA.xyz, but brokers have no clear rules on whether MEV mitigation or validator selection is part of the best execution.
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New Developments about Tokenized Securities
The comment deadline is September 25, 2026. The results will have an impact on broker dealers ATSs custodians, transfer agents, and DeFi protocols which process tokenized stock and Treasury exchanges.
Source: Securitize
Exchanges and smart-contract developers would benefit if the new guidance explains how smart-contract routing meets Rule 5310 of the US law.
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