31 Dec SEC – Proposed Rules – Regulation Alternate Trading Systems for ATSs that Trade Government Securities, National Market System Stock, and Other Securities; Regulation SCI for ATSs that Trade U.S. Treasury Securities and Agency Securities; and Electronic Corporate Bond and Municipal Securities Markets
December 31, 2020 – The SEC is proposing amendments to Regulation ATS under the Securities Exchange Act of 1934 for alternative trading systems (ATSs). The SEC is proposing to amend Regulation ATS for ATSs that trade government securities as defined under Section 3(a)(42) of the Exchange Act or repurchase and reverse repurchase agreements on government securities to Eliminate the exemption from compliance with Regulation ATS for an ATS that limits its securities activities to government securities or repurchase and reverse repurchase agreements on government securities, and registers as a broker-dealer or is a bank.
Require the filing of public Form ATS-G, which would require a Government Securities ATS to disclose information about its manner of operations and the ATS-related activities of the registered broker-dealer or government securities broker or government securities dealer that operates the ATS and its affiliates.
Require, among other things, public posting of certain Form ATS-G filings and to provide a process for the SEC to review Form ATS-G filings and, after notice and opportunity for hearing, declare Form ATS-G filings ineffective.
Apply the fair access rule under Rule 301(b)(5) of Regulation ATS to Government Securities ATSs that meet certain volume thresholds in U.S. Treasury Securities or in debt security issued or guaranteed by a U.S. executive agency, or government-sponsored enterprise.
The SEC is also proposing changes to correct and modernize Regulation ATS, Form ATS, Form ATS-N, and Form ATS-R.
In addition, the SEC is proposing to amend Regulation Systems Compliance and Integrity to apply it to ATSs that meet certain volume thresholds in U.S. Treasury Securities or Agency Securities.
Finally, the SEC is issuing a concept release on the regulatory framework for electronic platforms that trade corporate debt and municipal securities. Comments should be received on or before March 1, 2021.
For more information, visit www.federalregister.gov.