alternative trading system
(1) Alternative trading system The term “alternative trading system” means an organization, association, or group of persons that— (A) is registered as a broker or dealer pursuant to section 15(b) of the Securities Exchange Act of 1934 [ 15 U.S.C. 78 o(b)] (except paragraph (11) thereof); (B) performs the functions commonly performed by an exchange (as defined in section 3(a)(1) of the Securities Exchange Act of 1934 [ 15 U.S.C. 78c(a)(1) ]); (C) does not— (i) set rules governing the conduct of subscribers other than the conduct of such subscribers’ trading on the alternative trading system; or (ii) discipline subscribers other than by exclusion from trading; and (D) is exempt from the definition of the term “exchange” under such section 3(a)(1) [ 15 U.S.C. 78c(a)(1) ] by rule or regulation of the Securities and Exchange Commission on terms that require compliance with regulations of its trading functions.