Alternative trading systems (ATS) refer to electronic marketplaces that facilitate securities trading outside of traditional exchanges. ATS provide lower fees and faster trade execution than exchanges, but offer less regulation and transparency. The SEC regulates ATS to approve their operations. While ATS reduce costs and increase efficiency, they can also be complex, expensive, and risky if not properly tested. Examples of ATS in the Philippines include proprietary trading systems, broker-dealer systems, and electronic communications networks like the Philippine Stock Exchange. Major telecommunications companies also operate electronic trading networks.
2. Alternative Trading System
refers to any organization, association, person or
group of persons or system that maintains or
provides an electronic market place or facilities
for bringing together purchasers and sellers of
securities.
approved by SEC
not a national securities exchange
3. ADVANTAGES
Reduced Costs: ATSs typically charge lower
fees than traditional exchanges
Increased efficiency: ATSs can execute trades
faster than traditional exchanges.
Anonymity: ATSs do not publicly disclose
information about their trades or orders.
4. DISADVANTAGES
Complex and difficult to understand, this can
make it hard to know when to enter or exit a
trade.
Sometimes can be expensive because trading
systems require special software that can cost
thousands.
Risky, if trading system is not properly tested, it
could lead to losses.
5. Emilio Benito Aquino
Chairperson and CEO of the Securities and
Exchange Commission (SEC).
former head of the SECs Non-Traditional
Securities Department.
he reviewed the operations of international ATSs
which could serve as the policy framework that
will allow the trading of innovative securities in
the Philippines.
6. Examples of ATS include
Proprietary trading systems
Broker-dealer trading systems
Electronic communications
networks
7. Top 3 Best Proprietary Firms In The
Philippines
1. FTMO (Funding for Traders and
Mentoring Opportunities)
FTMO is a Forex prop firm, located in Prague, Czech
Republic. It was founded in 2014.
Instruments: Forex, Indices, Metals, Commodities,
Stocks, Crypto.
8. 2. Funded Trading Plus
Funded Trading Plus is a Forex
prop firm, located in London,
UK. It was founded in 2021.
Instruments: Forex, Indices,
Metals, Commodities, Crypto.
3. Topstep
Topstep is a Futures prop
firm, located in Chicago,
Illinois, USA. It was
founded in 2010.
Instruments: Futures
10. Broker-dealer Trading system
The Philippine Stock Exchange, Inc (PSE) markets
overall condition by estimating the amount of changes in
the stock prices of the listed companies.
Instruments: stocks (common stock, preferred stock,
cumulative preferred stock and convertible preferred
stock) and other securities
11. Electronic communication networks (ECN)
Globe Telecom
Intruments: regular
postpaid plans,
mobile data plans,
prepaid promos,
mobile internet,
online shop, and
broadband services
Smart Communications
Instruments: wireless
broadband services,
mobile commerce, and
satellite
communication
services
12. Dito Telecommunity
Instruments: call and
text messaging services,
mobile internet
Now Telecom
Instruments: Broadband
internet,Fiber-optic
communication,Call and
Text messaging services,
Mobile internet