What is one of the primary functions of Alternative Trading Systems?

One of the primary functions of Alternative Trading Systems (ATS) is to perform securities exchange functions without being registered as formal exchanges. ATS platforms facilitate trading in securities, allowing buyers and sellers to interact in a regulated and controlled environment. Unlike traditional exchanges, which are subject to a comprehensive set of regulatory requirements, ATS can operate with more flexibility, often catering to specific niches or providing more tailored trading mechanisms.

This functionality is particularly significant in the financial markets as it allows for greater liquidity and can lead to better price discovery for certain securities. Additionally, ATS can often handle transactions more quickly and at lower costs compared to traditional exchanges, making them an attractive option for various market participants.

In contrast, conducting auctions for high-value securities is not a fundamental function of ATS; rather, they focus on providing a platform for continuous trading. Providing investment advice is not a role of ATS, as they primarily facilitate trades rather than offer suggestions or recommendations. Designing conduct for securities regulations falls under the purview of regulatory bodies rather than the operational functions of ATS themselves.