Securities market ATSs concepts, their roles and related policy issues

Abstract

The aim of this paper is to clarify the concept of alternative trading systems (ATS) and to present an interpretation of their role in the securities markets.The discussion focuses on trading venues related to debt instruments and equities.Geographically, the American and European markets are the focus of interest.In brief, the primary aim of the paper is to demystify ATSs.Secondly, the paper analyses general policy issues raised by ATSs and concludes with an analysis of selected issues related to the Investment Services Directive.The main sources available on the subject are reports published by market participant lead associations, regulators or international organisations.As in all fields of the 'new economy', the most up-to-date information sources are publications issued by operators themselves.Moreover, the use of news articles (often online publications) has been deemed appropriate in this context.Key words: alternative trading system, ATS, ECN, exchange, equities market, bond market, oversight, supervision, systemic risk, investment services directive