What does ATS stand for?

The correct interpretation of ATS is "Alternative Trading System." An Alternative Trading System refers to a trading venue that is not an exchange, allowing trading in securities and often focusing on the needs of specific market participants, such as institutional investors. ATSs facilitate the matching of buyers and sellers while offering greater privacy and flexibility compared to traditional exchanges.

The significance of Alternative Trading Systems lies in their ability to provide a platform for liquidity and execution outside of conventional market structures, catering to diverse trading strategies and market demands. They can also include various mechanisms for executing trades, such as order matching, which can benefit users with different trading objectives.

The other options, while they may contain jargon from the trading world, do not define ATS appropriately. Automated Trading System typically refers to algorithmic trading platforms or software that execute trades automatically. Advanced Trading Strategy generally pertains to various complex methods of trading rather than a specific system. Asset Trading Security is not a recognized term in the context of trading systems and does not accurately capture the essence of what ATS represents.