Alternative Trading System (ATS)
An alternative trading system (ATS) is an SEC-regulated trading venue, operated by a registered broker-dealer, that matches buyers and sellers of securities outside a national exchange - the main venue where tokenized securities can legally trade.
An alternative trading system (ATS) is a regulated venue that matches buyers and sellers of securities but is not a national securities exchange. It is the legal home for secondary trading of most tokenized securities in the United States.
An ATS is governed by Regulation ATS and must be operated by a registered broker-dealer that files a Form ATS with the SEC. It gets lighter-weight treatment than a full exchange, which makes it a practical way to provide trading without building and registering an exchange.
This matters because a security token cannot simply be listed on a crypto exchange and traded freely like a utility token. The securities are restricted, transfers are controlled, and only certain, often verified, investors can hold them. An ATS is the venue designed to handle exactly that - it can enforce who is allowed to trade and keep the transfers compliant, giving holders a path to a secondary market.
Several SEC/FINRA-registered ATSs have operated specifically for digital-asset securities (for example, tZERO, Securitize Markets, and INX). Without an ATS - or another exemption - secondary liquidity for a security token is very limited, which is one of the main reasons "tokenization equals instant liquidity" is a myth. Available venues and their rules change, so check what is live when you need it.
Source: U.S. SEC (sec.gov), as of 2026.
Mentioned in
- Listing Tokenized Securities on an ATS
Listing tokenized securities on an ATS - what an alternative trading system is, why security tokens need one to trade, and what listing requires of an issuer.
- Secondary Markets & Liquidity for Security Tokens
Secondary markets and liquidity for security tokens - why tokenization alone doesn't create a market, the venues that exist, and how issuers design a real exit path.
- Who Regulates RWAs? The SEC, and Why It Matters
Who regulates RWA tokens? In the US it is mainly the SEC, backed by FINRA and state regulators. Here is who does what, and why it matters for your money.
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Educational content, not financial or legal advice.