All about investing

SEC Form ATS-R

Contents

Demystifying Securities and Exchange Commission (SEC) Form ATS-R

Securities and Exchange Commission (SEC) Form ATS-R is more than just paperwork; it's a vital regulatory requirement for alternative trading systems (ATS) to keep the market transparent. Here's everything you need to know about Form ATS-R, from its purpose to the types of assets it covers.

Understanding SEC Form ATS-R

When it comes to alternative trading systems, transparency is paramount. SEC Regulation ATS sets the stage for this transparency by establishing rules and guidelines for ATS operations. To maintain compliance, ATS platforms must submit Form ATS-R quarterly. This form provides a snapshot of the ATS's trading activities, detailing both the volume and dollar amount of trades across various securities.

Definition of an Alternative Trading System (ATS)

An ATS functions similarly to a stock exchange but operates under different regulatory requirements. Its primary role is to match buyers and sellers, particularly for large blocks of assets. These systems, such as dark pools, offer privacy to traders, ensuring that large transactions don't unduly influence market prices.

Types of Assets Covered by Form ATS-R

Form ATS-R requires detailed reporting on various types of securities, including listed equity securities, options, government securities, and corporate debt securities. This comprehensive coverage ensures that regulators have a clear view of all trading activities within the ATS, promoting market integrity and investor protection.