Definition
Regulation ATS is the SEC rule set governing alternative trading systems in the United States. It establishes registration, operational, reporting, and transparency requirements for ATS venues, and it is the primary regulatory framework institutional digital asset venues operate under when trading tokenized securities or other digital assets the SEC classifies as securities. Reg ATS amendments proposed in the mid-2020s further extended the rule's reach into digital asset trading platforms that meet exchange-like functionality thresholds.
Example
A tokenized security venue registers as an ATS under Reg ATS, files Form ATS disclosing its operations, submits required reporting to FINRA, and operates subject to SEC oversight of trading rules, fair access, and order-handling transparency.
How Liquid Mercury Handles This
Liquid Mercury builds the technology infrastructure behind Reg-ATS-registered venues for tokenized securities and digital asset trading, including the OMS, matching engine, compliance surfaces, and reporting infrastructure required under the rule.