SEC Proposes new Exchange Regulations for ATS
- The amendment rule is to promote operational transparency.
- The commission also plans to impose amendments to Regulation ATS and ATSs that trade government security.
- This amendment aims to bring buyers and sellers of security together.
The Securities and Exchange Commission proposed to amend a rule which defines specific terms used in the statuary definition of an exchange. In addition, the rule which will be amended will include a system where they use non-firm trading interest protocols. This amendment aims to bring buyers and sellers of security together.
Meanwhile, the commission is also planning to impose amendments to Regulation ATS and ATSs that trade government securities manner of operation. This help in applying balanced and clear access rule to government ATSs that meet certain volume threshold in U.S. treasury securities.
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Paramount to this, the SEC is proposing to amend Form ATS-N for NMS stock and require electronic filing of and modernize Form to amend their existing disclosure.
“The amendment rule is to promote operational transparency, system integrity, and for fair and orderly markets.” according to SEC.
However, earlier in September 2020, the SEC recognized the critical role of government securities in the U.S. and the economy. Still, the essential volume in government securities transacted on the system as ATSs.