Mar. 30, 2023
ATS (Alternative Trading Systems (ATS are SEC-regulated electronic trading platforms that match buyers and sellers of stocks) should submit detailed disclosures about their operations, including how they manage conflicts of interest, how they operate their order routing practices, and how they handle customer orders. This would make it easier for investors to understand how ATS operate and how their orders are executed. Sending orders to a wholesaler for internalization should not be the only option available to investors. The SEC should prioritise creating a competitive market structure that benefits investors and encourages transparency. Estimated savings for retail investors range from $1.12 billion to $2.35 billion, primarily through increased competition to supply liquidity to marketable orders. Overall, the proposed changes and initiatives by the SEC to increase transparency, reduce conflicts of interest, and promote fair and transparent trading practices align with the interests of household investors and are crucial for creating a competitive market structure that benefits investors and encourages transparency.