The SEC’s ATS Transparency Rules: What’s the Impact?

The SEC’s new proposed rules on transparency in alternative trading systems are going to shine a light on the operations of dark pools, ensuring fair access to information for all market participants.

The SEC’s proposed rule on Regulation of NMS Alternative Trading Systems would formally create a disclosure regime along with a new form Reg ATS-N and a process for filing amendments.

Clearly, investors are the winners because they will gain access to detailed information about ATS trading services, fees, market data, order types, and algorithms.

In return for filing this form, ATSs are granted an exemption from the more burdensome regulations imposed on exchanges.

As the industry moves in the direction of enhanced disclosure for the once secretive dark pools, the amount of information could skyrocket.