On July 18, 2018, the U.S. Securities and Exchange Commission voted to approve a final rule amending Regulation Alternative Trading System to require alternative trading systems that trade national market system stocks to file with the SEC new Form ATS-N to begin operations or, for currently operating ATSs, to continue operations.
Form ATS-N will provide for enhanced disclosures regarding the ATS’s operations and relationship with its broker-dealer operator relative to current Form ATS and will be publicly available. Importantly, unlike under the November 2015 proposal, the SEC would automatically deem the Form ATS-N submissions to be effective after the review period, unless the Commission found it to be ineffective.
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