What Is an Alternative Trading System? Discover Its Role and Best Use Cases
In the ever-evolving financial landscape, the rise of Alternative Trading Systems (ATS) has introduced new opportunities for trading beyond traditional exchanges. These systems provide innovative solutions for securities trading while catering to the needs of institutions and investors seeking anonymity, efficiency, and flexibility. In this article, we’ll explore what an ATS is, how it works, and its best use cases in modern markets. What Is an Alternative Trading System? An Alternative Trading System (ATS) is a non-exchange trading venue designed to facilitate the buying and selling of securities. Unlike major exchanges such as the NYSE or NASDAQ, ATS platforms operate with more flexibility and are often tailored to meet specific trading needs. ATS platforms are regulated by the Securities and Exchange Commission (SEC) under Regulation ATS, ensuring compliance and transparency while allowing these systems to focus on innovative trading solutions. Key Features of an Alternative T...