Two primary methods of providing liquidity for your investor shareholders are Internal “Bulletin Board” Markets and Alternative Trading Systems (“ATS”).

 

Here are some key differences between the two methods and platforms:

 

The key difference between an internal trading bulletin board for an issuer and an Alternative Trading System (ATS) lies in regulatory status, functionality, and who operates it.

Internal Trading Bulletin Board (ITBB)

An issuer-run platform that facilitates communication between existing and prospective investors about buying or selling shares — typically without matching trades or executing transactions.

Key Features:

• Operated by or on behalf of the issuer (e.g., a private company).
• Does not execute trades; usually just posts indications of interest (“want to buy/sell” notices).
• May allow manual introductions, but no active matching or execution.
• Not registered as a broker-dealer or ATS.

Used by:

• Private companies (especially startups or pre-IPO firms).
• For facilitating secondary transactions among existing shareholders or employees.

Regulatory Notes:

• Must be careful not to trigger broker-dealer or ATS registration requirements.
• Typically avoids automated matching or transaction facilitation to stay exempt.

Alternative Trading System (ATS)
 
Definition:

An SEC-regulated trading venue that brings together buyers and sellers of securities (often private securities) outside of traditional exchanges, like NYSE or NASDAQ.

Key Features:

• Operates automated matching systems or platforms.
• May support real-time trading, pricing, and execution.
• Must be registered as a broker-dealer and file Form ATS with the SEC.
• Subject to Regulation ATS under U.S. securities law.

Any issuer interested in providing a secondary market for securities sales should obtain proper legal advice on the ramifications of providing such access whether through an ATS or ITBB.

 

Interested in raising capital for your business? Call us today to discuss! (720) 586-8610