What Is An Ats Alternative Trading System

An ats is a trading system that meets the definition of exchange under federal securities laws but is not required to register as a national securities exchange if the ats operates under the exemption provided under exchange act rule 3a1 1 a.

What is an ats alternative trading system. I the alternative trading system shall file an initial operation report on form ats 249 637 of this chapter in accordance with the instructions therein at least 20 days prior to commencing operation as an alternative trading system. Alternative trading systems are typically regulated as broker dealers rather than as exchanges although an alternative trading system can apply to be regulated as a securities exchange. Alternative trading systems atss as a marketplace an alternative trading system ats is regulated under the securities act ontario and national instrument 21 101 marketplace operation national instrument 23 101 trading rules and their related companion policies. Regulation ats establishes a regulatory framework for alternative trading systems atss.

An ats is not a national securities exchange. However an ats may apply to the sec to become a national securities exchange. An alternative trading system ats is one that is not regulated as an exchange but is a venue for matching the buy and sell orders of its subscribers. An alternative trading system ats is a trading venue that matches buyers and sellers for transactions.

Such a system is not regulated as an exchange but is a broker dealer to match the buy and sell orders of its subscribers. Many crypto sector platforms are seeking to be approved as alternative trading systems or atss. Alternative trading systems atss are sec regulated electronic trading systems that match orders for buyers and sellers of securities. An ats can be very similar to an exchange with a different set of reporting requirements which.

What is unique about it is that it is not regulated as an exchange like traditional stock exchanges stock exchange a stock exchange is a marketplace where securities such as stocks and bonds are bought and sold. Alternative trading system ats alternative trading systems denote one more stage in the development of electronic trading means in the us and canadian stock markets.