Put yourself in a regulator's shoes overseas: You know that alternative trading systems are on the rise; they're coming. So what do you do? Well, it would be best for all if policies were established now, instead of opening up your market to what could amount to a free for all. In Asia anyway, all eyes are on Australia, where three entities have applied, reports Waters: Chi-X, Liquidnet and AXE ECN, a venture by NZX, Citigroup, Commonwealth Securities, Goldman Sachs JBWere, Macquarie Securities and Merrill Lynch. They are all proposing slightly different systems. For now, regulators seem stymied; the applications have been pending for two years. You have to wonder if demand from the buy side will force the issue at some point. The European example may be useful. There, ATSs have transformed the industry, bringing new liquidity and services. Asian countries may want to coordinate. The only real route is to embrace these services for the benefits they offer.  

For more:
- here's the Waters article [1]