After having done some reading on ATC systems - "A traction control system (TCS), also known as anti-slip regulation (ASR), is typically (but not necessarily) a secondary function of the anti-lock braking system (ABS) on production motor vehicles, designed to prevent loss of traction of driven road wheels. When invoked it therefore enhances driver control as throttle input applied is mis-matched to road surface conditions (due to varying factors) being unable to manage applied torque."
The ATC system works just like the ABS system, only in reverse, and it uses the same wheel-speed sensors the ABS system uses. The ABS system, as we all know, does not allow the BRAKING system to stop wheel rotation while traveling at any speed... which would cause a skidding situaton. The ATC system works to not allow the "ACCELERATION system" (read: your heavy foot) to mismatch wheel rotation speeds... as compared between all the wheels connected to the engine and transmission. The ABS wheel-speed sensors are enlisted by both systems, and both systems work to keep the several wheels turning at near the same speed. The ATC manipulates wheel-spinning speeds by applying braking to those wheels over-spinning, or in more sophisticated systems, by changing torque delivery to individual wheels through the drive train.
ATC and ABS systems are normally on... unless manually turned off or malfunctioning. Soooooo... the ATC switch on my dash is there to manually turn off the ATC system momentarily, and only while I hold the switch into its OFF position... because when I release the switch, it reverts under spring tension to its ON position. If a driver keeps a light foot on the accelerator while starting out on a slippery road, then the ATC system will probably never be required to be turned OFF manually.