Preamble

March 4, 2004SEC RULES AND REGULATIONS ON ALTERNATIVE TRADING SYSTEMPreambleWHEREAS, the continuous advancement of information and communication technology and the globalization of financial markets is expected to facilitate the development of innovative securities trading and other trading markets in the local financial industry, which include alternative trading systems, among others;WHEREAS, alternative trading systems have become integral to the modern securities markets, providing investors with enhanced flexibility, security, transparency, and reduced trading costs, as well as competition to the established securities exchanges;WHEREAS, the operation of alternative trading systems would work towards the realization of the objectives of the E-Commerce Act of 2000;WHEREAS, pursuant to the mandate of the Commission under the Securities Regulation Code, to encourage competitiveness in the market, promote the development of capital market and to ensure the protection of the investors, the Commission hereby promulgates the following rules governing alternative trading systems for the information and guidance of all concerned:SECTION I. Definitions. —For purposes of these rules, the following definition of terms shall apply unless the context otherwise requires:A. Alternative trading system (ATS)...