Late to ATS Regulation, U.K. Sees Slow Start Under New Regime.(alternative trading systems )

The U.K. Financial Services Authority justified introducing a new regulatory regime for alternative trading systems (ATS) by saying it would bring in extra business. The rules took effect at the start of April, but in London investment houses are still waiting for the surge.

"We weren't knocked over in the rush on April 1," said a broker at one big City firm. "Frankly, I doubt our clients are even aware of the change."

During the long gestation period for the regulations, ATS operators remained unconvinced that a new regime was necessary. They had generally been sanguine under rules written for ordinary securities firms. They also balked at the cost of introducing …