SEC Charges RSE Markets for Operating Unregistered Securities Exchange
The Securities and Exchange Commission (SEC) charged RSE Markets Inc. with operating as an unregistered exchange by providing a marketplace and facilities that brought together purchasers and sellers of securities, specifically equity interests in collectible assets such as cars and watches. The SEC’s order found that between July 1, 2018, and November 20, 2021, RSE operated the Rally Platform which allowed retail investors to purchase and sell these securities exclusively within trading windows provided by RSE. Despite this, RSE failed to register the Rally Platform as a national securities exchange nor operated it pursuant to an exemption from such registration. As a result, RSE agreed to cease and desist from committing violations of Section 5 of the Securities Exchange Act of 1934 and to pay a $350,000 civil penalty without admitting or denying the SEC’s findings.