SEC – Proposes Rules to Extend Regulations ATS and SCI for Alternative Trading Systems to Treasuries and Other Government Securities Markets

September 28, 2020

Regulation ATS/SCI Amendments

Amends Reg ATS for ATSs that trade government securities or repurchase and reverse repurchase agreements on government securities (government securities ATSs). Eliminate compliance exemption for ATS that limits securities activities to government securities or government securities ATSs, and registers as a Broker-Dealer or is a bank.

Require the filing of public form ATS-G, according to 17 CFR 240.3a1-1(a), which would require a government securities ATS to disclose data about its manner of operations, as well as data on ATS-related activities of the Broker-Dealer, other dealers that operate ATS, and affiliates.

Amendments would additionally require public posting of certain Form ATS-G filings. Provide a process for SEC to review Form ATS-G filings and declare them ineffective. Apply fair access rule to government securities ATSs that meet volume thresholds in US treasury securities or debt security issued or guaranteed by a US executive agency. Correct and modernize Reg ATS and Forms ATS, ATS-N, and ATS-R under 17 CFR 249. Apply Reg SCI to ATSs meeting volume thresholds in US treasury/agency securities.

Concept Release

Issued a concept release on electronic corporate bonds, municipal securities market. FIMSAC committee made recommendations concerning the regulation of these platforms. Lack of rule harmonization among fixed income electronic trading platforms is a concern. Recommended a working group made up of the SEC, FINRA, and MSRB to review the regulatory framework. SEC requested comments to obtain information about fixed income electronic trading platforms, including their operations, services, fees, market data, and participants.

Effectiveness

Comments must be submitted in 60 days from publication in the Federal Register.

For more information, visit www.sec.gov



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