Requirements for Alternative Trading Systems

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What this video covers

  • How Regulation ATS's two-step framework determines whether a venue is covered and what compliance burden follows
  • The five exclusions, including the bank or broker-dealer exclusion for government securities, qualifying repurchase agreements, options on government securities, and commercial paper
  • How a conditional or unconditional Securities and Exchange Commission (SEC) order can excuse a venue from one or more requirements rather than the entire rule
  • The eleven requirements, including broker-dealer registration, Form ATS notices, recordkeeping, quarterly reporting, confidential information safeguards, examinations, and the exchange-name prohibition
  • The volume triggers for order display and execution access, fair access at 5% or more, and systems capacity, integrity, and security at 20% or more of municipal or corporate debt volume
  • The 20-day, 30-day, and 10-day filing deadlines, including the difference between a prompt correction and a quarter-end correcting amendment
  • How venues trading both NMS stocks and non-NMS securities must use separate filing paths and separate Form ATS-R reports

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