SEC proposes new alternative trading rules 20 November 2015Washington DC Reporter: Stephanie Palmer
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The US Securities and Exchange Commission (SEC) has proposed new rules intended to improve regulatory oversight and transparency of alternative trading systems (ATSs) that trade stocks on national market systems.
Under the proposed rules, those ATSs would be obliged to file disclosures about their operations and the activities of their broker-dealer operator and affiliates. A new form would include information on trading, types of orders and the market data used, as well as execution and priority procedures.
The information would also be made publicly available on the commission’s website, allowing market participants to better asses ATSs, and to be better informed when evaluating the order handling decisions made by their brokers.
The SEC would be able to qualify systems for exemptions, and to review disclosures, declaring them either effective or ineffective, as well as reviewing amendments.
Chair of the SEC Mary Jo White said: “Investors and other market participants need more and better information about how alternative trading systems work.”
“The proposed changes would represent a critical step forward in delivering greater transparency to investors and enhancing equity market structure.”
The SEC has published the proposal on the Federal Register, and is now seeking public comment for 60 days.
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