FIF Webinar: Recent SEC Government Securities ATS Rule Proposal

Full Event Description

This webinar will discuss the SEC’s recent proposal to eliminate the exemption from compliance with Regulation ATS for ATSs that only trade U.S. government securities.  The webinar will also touch on other amendments to Regulation ATS proposed by the SEC, including the proposal to require that Form ATS and Form ATS-R be filed electronically via EDGAR.

The SEC recently announced a proposed rulemaking that would eliminate the exemption from compliance with Regulation ATS for alternative trading systems (“ATSs”) that only trade U.S. government securities or repurchase and reverse repurchase agreements on government securities (“Government Securities ATSs”).  If adopted, operators of Government Securities ATSs would be required to prepare and file proposed Form ATS-G with the Commission and otherwise comply with Regulation ATS, as amended by the proposal.  Proposed Form ATS-G borrows heavily from Form ATS-N, including the obligation to make each version publicly available on the SEC’s EDGAR website.  The proposal would also subject operators of certain high-volume Government Securities ATSs to the requirements of Regulation SCI.

While largely focused on proposed Form ATS-G, the release includes a number of proposed amendments to Regulation ATS that would impact current ATS operators.  This includes changes that would (i) require that Form ATS and ATS-R filings be submitted electronically via EDGAR, (ii) make publicly available certain information provided in Form ATS filings (which, unlike Form ATS-N and proposed Form ATS-G, may be treated as confidential upon request) and (iii) require parties submitting Form ATS amendments to identify whether the amendment was an updating, material or correcting amendment.  The release also includes proposals to “clarify” certain Form ATS-N disclosure items.  While the proposing release was originally announced on September 28, 2020, as of November 19, 2020, the Release has not been published in the Federal Register.  Comments on the proposal are due within 60 days of publication in the Federal Register.