Europe's financial watchdogs plan to continue regulating
alternative trading systems (ATSs) as they regulate brokerages,
rather than classify ATSs as separate exchanges to be governed
by stock exchange rules, says a recent report.
In its paper to the European Commission, the Forum of
European Securities Commissions (FESCO) concluded that the
Investment Services Directive (ISD), which regulates investment
firms, can be used to control most of the risks posed by
electronic trading systems. At present, ATSs are...