SEC Proposes Significant Regulatory Changes For Alternative Trading Systems

Summary: The Securities and Exchange Commission recently proposed significant changes to the regulatory requirements applicable to dark pools and other alternative trading systems that trade national market system stocks. The proposed changes would require detailed public disclosure about the operation of the trading systems, as well as their owners and operators.

On November 18, 2015, the Securities and Exchange Commission ("SEC" or "Commission") proposed significant changes to the regulatory requirements applicable to dark pools and other alternative trading systems ("ATSs") that trade national market system stocks ("NMS Stock ATSs"). As a general matter, the proposed changes to Regulation ATS ("Reg ATS"), promulgated under the Securities Exchange Act of 1934 ("Exchange Act"), are designed to: (1) provide detailed public information to market participants about the potential conflicts of interest and operations of NMS Stock ATSs, their broker-dealer operators and