ASA Comments on SEC’s Definition of “Exchange” & Regulation ATS Proposal
WASHINGTON – The American Securities Association (ASA) submitted comments to the Securities and Exchange Commission (SEC) on the Commission’s recent proposal regarding the definition of an “exchange” and amendments to Regulation ATS (Reg ATS) and Regulation SCI.
“While the ASA appreciates the SEC’s efforts to review regulations for a market that continues to rapidly evolve, we believe the SEC must carefully consider the wide-ranging consequences of the Proposal on the $22 trillion U.S. Treasury market along with markets for other securities that would be impacted,” ASA CEO Chris Iacovella wrote in the letter.
In the letter, ASA outlined how the SEC has not provided sufficient time for the public to submit feedback on recent rule proposals, echoing concerns recently raised by Commissioner Peirce. Additionally, ASA urged the SEC to not use an overly-broad definition of Communication Protocol System.
“It is unclear what regulatory benefits may derive from requiring a trading desk to become an exchange or a separately regulated ATS,” Iacovella wrote. “We therefore urge the SEC to establish a clearer set of criteria to define a Communication Protocol System and to not force registration requirements on trading desks of regulated broker-dealers who hold sufficient capital when additional regulatory requirements are not warranted.”
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.