What does ATS stand for in the context of securities trading?

In the context of securities trading, ATS stands for Alternative Trading Systems. These are platforms that facilitate the trading of financial securities outside of traditional stock exchanges like the NYSE or NASDAQ. ATSs provide a venue for buyers and sellers to come together, allowing for greater flexibility and potentially lower costs associated with trading.

Alternative Trading Systems play a crucial role in the financial markets by enhancing competition and providing additional liquidity. They can include various types of trading mechanisms such as electronic trading platforms, crossing networks, or any system that enables trading of securities in a way that is not conducted through traditional exchanges.

Understanding this term is vital for anyone involved in securities and investments, as ATSs have become increasingly important in modern financial markets, especially with the rise of high-frequency trading and algorithmic trading strategies. This knowledge helps investors and traders navigate the diverse landscape of trading venues available today.