By Leanna Kelly While most retail investors place trades through a brokerage, it’s not the only way to buy and sell securities. There are also alternative systems, largely used by institutional investors. What is an alternative trading system (ATS)? While it functions similar to an exchange, an ATS offers a more direct way to trade large chunks of securities in a way that doesn’t influence the share price during market hours. Moreover, there are fewer rules to abide by, giving institutional investors more opportunities to trade.
While most retail investors won’t participate in an ATS, it’s still important to know how they function. …read more
