Definition
An alternative trading system is a non-exchange trading venue that matches buyers and sellers under SEC-registered operational rules but without the full regulatory status of a national securities exchange. ATSs cover dark pools, block-trading venues, and institutional-focused marketplaces where participants value reduced information leakage and negotiated execution. In digital assets, ATS registration under Regulation ATS is the path many institutional venues follow to operate in the United States without securing a full exchange license, and it is the regulatory surface that governs disclosure, reporting, and operational integrity.
Example
A tokenized security trades on an SEC-registered ATS that matches institutional buy and sell orders without displaying pre-trade quotes publicly. Post-trade reporting flows to FINRA under Reg ATS disclosure requirements.
How Liquid Mercury Handles This
Liquid Mercury builds the technology stack behind ATS-registered venues, including the OMS, matching engine, pre-trade risk controls, and post-trade reporting surfaces required for compliant ATS operation.