SEC APPROVES CHANGES IN RULES RELATING TO ALTERNATIVE TRADING SYSTEMS:
In a press release on January 26th, the SEC announced approval by the Commission of final changes in so-called ATS rules governing Alternative Trading Systems. According to the press release, the new rules affect most securities trading platforms, including those relating to Government Securities transactions. It would appear the underlying thrust of the 1/26 Release is that most ATS platforms and related services are more like exchanges now in terms of fair access matters. Asset Managers Tech generally supports this view.
Prior to the current modern era of technology, it was well-established in the securities industry that fixed income securities trading activities were tailored to long standing best execution practices to foster fairness and investor protection standards. At this juncture, fair practice requirements generally apply across all electronic markets, including both equities and transactions in Treasury bonds and notes and other fixed income instruments.
SEC Chair Gary Gensler favors the new above-mentioned rules, according to the SEC’s press release. Further, this rulemaking shows the industry that high profile technology projects of the SEC are still getting done very effectively, notwithstanding the extra efforts needed by Washington regarding the pandemic. This SEC rulemaking announcement, in any event, is a major achievement in terms of the work that went into it by many high level SEC staff over a long period of time. Next step is publication of the new and revised ATS rules of the Commission in the Federal Register; there will also be an opportunity for final comments for a 30 day period.
Thanks to our members and subscribers for your interest in AMT’s messaging concerning modern technology & medical science and how developments in these areas of our society relate to the investment management industry.
Joe Sack, AMT President