Alternative Trading Systems (ATS)

Extracted Attributes

• Subtypes

  Electronic Communication Networks (ECNs), Dark Pools, Crossing Networks, Call Markets

• Primary Regulator

  Securities and Exchange Commission (SEC)

• Regulatory Status

  Registered Broker-Dealer

• European Equivalent

  Multilateral Trading Facility (MTF)

• Governing Regulation

  Regulation ATS (Rules 300-303)

• Primary Applications

  Liquidity access, block trading, after-hours trading

• Self-Regulatory Organization

  Financial Industry Regulatory Authority (FINRA)

Timeline

• Beginning of the SEC's frequently requested document records for the Alternative Trading System (ATS) list. (Source: Web search results)

  2009-01-01

• Off-exchange trading volumes in US equity markets surpass on-exchange trading volumes for the first time. (Source: Wikipedia)

  2025-01-01

• Projected end date for the current SEC FOIA record range for ATS lists. (Source: Web search results)

  2026-01-01

Alternative trading system

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. 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). In general, for regulatory purposes, an alternative trading system is an organization or system that provides or maintains a market place or facilities for bringing together purchasers and sellers of securities, but does not set rules for subscribers (other than rules for the conduct of subscribers trading on the system). An ATS must be approved by the United States Securities and Exchange Commission (SEC) and is an alternative to a traditional stock exchange. The equivalent term under European legislation is a multilateral trading facility (MTF). These venues play an important role in public markets for allowing alternative means of accessing liquidity. They can be used for trading large blocks of shares away from the normal exchange, a practice that could otherwise skew the market price in a particular direction, depending on a security's market capitalization and trading volume. ATSs are generally electronic but don't have to be. ATSs can be distinguished from electronic communication networks (ECNs), which are a "fully electronic subset of ATSs that automatically and anonymously match orders". In recent years, the SEC and other regulators have ramped up their enforcement activities with respect to alternative trading systems, initiating broad investigations and bringing actions for various violations, such as trading against customer order flow or permitting external vendors to retain and make use of confidential customer trading information in the vendor’s trading activities. In January 2025, off-exchange trading volumes in US equity markets, surpassed the on-exchange trading volumes.

Web Search Results

• Alternative Trading System (ATS) List

  January 2009 - January 2026 Regulation ATS establishes a regulatory framework for “alternative trading systems” (“ATSs”). 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). To operate under this exemption, an ATS must comply with the requirements set forth in Rules 300-303 of Regulation ATS. [...] To comply with Regulation ATS, an ATS must, among other things, register as a broker-dealer and file an initial operation report with the Commission on Form ATS before commencing operations. Thereafter, an ATS must file amendments to Form ATS to provide notice of any changes to its operations, and must file a cessation of operation report on Form ATS if it ceases operations.Form ATS is not an application and the Commission does not approve an ATS before it begins operation. Form ATS is, instead, a notice to the Commission. The requirements for filing reports using Form ATS can be found in Rule 301(b)(2) of Regulation ATS. [...] Based on information filed by ATSs on Form ATS, the ATS list includes the name, the name(s) under which business is conducted, and location of each ATS with a Form ATS on file with the Commission. The list also identifies each ATS that filed a cessation of operations report in the prior month. The list is provided in a PDF format and arranged alphabetically by ATS name. The SEC receives submissions from ATSs on an ongoing basis pursuant to Regulation ATS. We note that the list of ATSs changes over time. Commission staff expects to update the list monthly. A list of ATSs that filed an initial Form ATS-N with the Commission to trade NMS stocks can be found at

• Guidance for Alternative Trading Systems

  # Guidance for Alternative Trading Systems ## Overview An alternative trading system (ATS) is an SEC-regulated trading venue in which a computerized system matches buy and sell orders of securities. An ATS is not a national securities exchange, an ATS may apply to the SEC to become a national securities exchange.1 An ATS that registers as a broker-dealer must also comply with the obligations associated with being a registered broker-dealer, including FINRA membership and compliance with FINRA rules.2

• What Is an ATS? Understanding Alternative Trading Systems - Exegy

  Alternative Trading Systems, a subtype of ATS, have been a less regulated market since their inception. Although ATSs have for a long time had to register with the U.S. Securities and Exchange Commission (SEC) and abide by Regulation ATS (Reg ATS), the architecture has held to nearly the same basic structure for most of the last 20 years despite substantial upward momentum for off-exchange trading volumes. [...] ## How Do ATSs Work, and What Types Exist? To appreciate how contemporary equity markets operate, we must learn how these Alternative Trading Systems (ATSs) function. Given the proliferation of trading over dozens of venues, ATSs were formed as an integral component for how liquidity is accessed, matched, and traded, particularly on channels other than the traditional exchanges. ### What is an ATS? At a higher level, ATS stands for alternative trading venue and it is the platform from which buyers and sellers are matched outside traditional public markets like the New York Stock Exchange and Nasdaq. Although ATSs do not list securities or exist as a public exchange, they are increasingly important in negotiating prices and finding possible liquidity.

• Understanding the SEC's Regulation ATS for Alternative Trading ...

  Alternative Trading Systems are trading venues operated by registered broker-dealers that bring together multiple buyers and sellers of securities but do not set rules governing subscribers beyond the conduct of their trading on the system. In practical terms, an ATS can look like a “dark pool,” a crossing network, a matching engine for fixed income instruments, or even an internalization platform that executes client flow off-exchange. The central hallmark is that the operator provides a marketplace mechanism for securities transactions without assuming the mantle of a national securities exchange. This nuance matters because it determines whether the operator must register as an exchange, operate as an ATS under Regulation ATS, or restructure the business model entirely. [...] An ATS must be operated by an entity that is registered as a broker-dealer and is a member of a self-regulatory organization. In practice, this means membership in a national securities association, with operational and financial responsibilities that extend beyond the ATS function itself. The broker-dealer must maintain sufficient net capital, supervisory systems, qualified personnel, and robust books and records. These prerequisites are not mere formalities. The supervisory system must address the unique conflicts and risks inherent in operating a marketplace, including surveillance for manipulative trading, information leakage controls, and fair access policies when applicable.

• Alternative Trading System (ATS) - Definition, Examples

  The system allows trades to happen outside the traditional trading hours associated with stock exchanges, which means that traders can make trades based on after-hours news. An ECN makes money by charging a fee for each transaction through access fees and commissions, which is a downside for traders since per-transaction charges quickly add up. #### 2. Dark Pools Dark pools are another type of Alternative Trading Systems that are considered controversial since the trades are done out of the public eye, clouding the transactions. [...] Trading that is done through the private exchanges often involves a large volume of securities conducted through block trades by institutional investors (organizations that invest money on behalf of others), such as mutual funds, pension funds, and insurance companies. Sometimes, such investors are known as the “Whales on Wall Street.” #### 3. Crossing Networks Similar to dark pools, crossing networks allow trades to happen outside of the public eye. Since the details of the trade are not relayed through public channels, the security price is not affected and does not appear on order books. [...] Often, the accounts in which the trades are conducted can be anonymous, which is highly advantageous for traders. It should be noted that dark pools and crossing networks are legal, although they’ve undergone scrutiny by the financial press and news outlets in recent years. #### 4. Call Markets Call markets are a subset of ATS that group together orders until a specific number is reached before conducting the transaction. As such, trades are done at predetermined time intervals. A call market, therefore, determines the market-clearing price (the equilibrium value of a traded security) based on the number of securities offered and bid on by the sellers and buyers, respectively.