alternative trading system

An alternative trading system (ATS) is a non-exchange platform where buyers and sellers can trade securities directly. It operates electronically, offering more privacy, flexibility, and often better pricing than traditional stock exchanges. Examples include dark pools and electronic communication networks (ECNs). ATSs are regulated to ensure transparency and fair trading, but they provide a different environment than standard exchanges like NYSE or Nasdaq. Investors and institutions use ATSs to execute large or complex trades efficiently, reducing market impact and costs while maintaining a level of oversight and regulatory compliance.