The new rules, checked on every fill.
The SEC's exemption for tokenized-stock venues comes with hard limits. Fletchery turns them into code that runs before a trade settles, so a venue never has to explain a breach after the fact.
Rules that are easy to break by accident
- Monthly volume per stock is capped at a share of last month's average daily volume.
- Breaching the cap twice within a year stops the stock on that venue for three months.
- A third-party token needs 30 days' notice to the issuer before it can trade, and the issuer can object.
- When an exchange halts a stock, every venue has to stop with it.
Work out a venue's monthly cap
● Rules from the exemptionWhat Fletchery does
Volume caps, symbol limits, issuer notices and halts enforced in code before settlement.
Caps metered on every fill
Each fill adds to the stock's volume for the calendar month. A fill that would cross the cap is rejected before it settles, so the whole trade unwinds instead of breaching.
Fail closed without data
If this month's volume basis hasn't been posted, the stock doesn't trade. Guessing is never allowed.
Listing notices tracked
Third-party listings start a 30-day notice. The issuer can object during that window, and the stock can only go live after it closes without objection.
Halts mirrored instantly
Exchange halts and market-wide circuit breakers are set on-chain, and every venue running Fletchery stops at the same moment.
The details
These are the values the Fletchery prototype enforces today.
| Rule | Value enforced |
|---|---|
| Tier 1 monthly cap | 0.25% of prior-month average daily volume, per stock |
| Tier 2 monthly cap | 2.5% of prior-month average daily volume, per stock |
| Symbol limit | 75 stocks (Tier 1), 250 stocks (Tier 2) |
| Repeat breach | Second breach within 12 months stops the stock for 90 days |
| Issuer notice | 30 days for third-party tokens, with an issuer objection window |
| Halts | Per-stock halts and market-wide halts, mirrored on-chain |
| Cap reset | First day of each calendar month (UTC) |
Common questions
How can a venue breach at all if caps are checked first?
Only through a data correction, for example when last month's volume is revised down after the venue has already traded. Fletchery records that as a breach and applies the stop rule automatically.
Is this legal advice?
No. Fletchery encodes the published rules as software. Each venue and broker remains responsible for its own compliance and should confirm interpretations with counsel.
More of Fletchery
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Explore →AI agent limits
Per-trade caps, daily caps, stock allowlists and an off switch for AI assistants.
Explore →Dividends and votes
Record-date snapshots for exact dividends and proxy votes, pool-held shares included.
Explore →Let's build the first integrations together.
If you run a broker, a trading app or a tokenized-stock venue, we'd like to hear from you.