What is an alternative trading system (ATS)?

An alternative trading system (ATS) is a non-exchange trading venue that matches buyers and sellers for transactions. Contrary to traditional stock exchanges, it's regulated as a broker-dealer instead of an exchange.

Where have you heard about alternative trading systems (ATS)?

Some examples of alternative trading systems include electronic communication networks, dark pools, crossing networks and call markets. They're commonly used by traders to find counter-parties for transactions.

What you need to know about alternative trading systems (ATS).

ATS are especially useful for those trading in large quantities, like investors and professional traders. One of the main benefits of an alternative trading system is that by using it to trade large quantities, you avoid skewing the market price as with regular stock exchanges. Additionally, there are fewer rules subscribers have to follow, other than those governing conduct.

Find out more about alternative trading systems (ATS).

Electronic communication networks are one of the most commonly-used types of alternative trading systems. Read our guide here.