ABSTRACT
Traditional exchanges face enormous challenges. Technology, deregulation and investor needs are driving forces reshaping the trading landscape throughout the world. Technological progress not only allows direct access at traditional exchanges. It also enables the creation of new marketplaces, called ‘Alternative Trading Systems’ (ATS). A general definition of ATS is ‘a trading mechanism developed independently of the established marketplaces and designed to match buyers and sellers on an agency basis’ (Salomon Smith Barney, 2001). The purpose of this paper is to review the importance of ATS and their impact on the liquidity of traditional marketplaces.
