What Is An Ats Alternative Trading System

An alternative trading system ats is a trading venue that matches buyers and sellers for transactions.

What is an ats alternative trading system. 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. Alternative trading systems atss are sec regulated electronic trading systems that match orders for buyers and sellers of securities. 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.

Alternative trading system ats is a us and canadian regulatory term for a non exchange trading venue that matches buyers and sellers to find counterparties for transactions. 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. An ats can be very similar to an exchange with a different set of reporting requirements which. An ats is not a national securities exchange.

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. Ni 21 101 defines a marketplace as a facility that. Such a system is not regulated as an exchange but is a broker dealer to match the buy and sell orders of its subscribers. 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.

Many crypto sector platforms are seeking to be approved as alternative trading systems or atss. The better alternative trading system bats is a u s based stock exchange offering investors equities options and foreign exchange trading services.