04.10.2014

Bats Chi-X Europe Gains Share

04.10.2014
Terry Flanagan

Bats Chi-X Europe has increased its market share in its largest lit book by 1.4% since announcing a price change last week.

The exchange announced a new pricing model on April 3 on its CXE lit order book, the largest of the exchange’s four European order books, to lower commissions for clients who trade the highest volumes.

Bats Chi-X Europe has four trading books – the BXE lit and anonymous midpoint dark order books and the CXE lit and dark books – with different pricing structures.

The change applied retrospectively from April 1 to the CXE lit book for U.K., Irish, French, Dutch, Belgian, and Portuguese stocks, depositary receipts and exchange-traded funds. Prices for other stocks traded on the CXE lit book and on the other three trading books remained the same.

Mark Hemsley, chief executive of Bats Chi-X Europe, said in a statement last week: “By introducing pricing tiers, we give our customers the flexibility to benefit from the trend towards greater trading volumes across Europe.”

Bats Chi-X Europe had an average 21.97% share of European trading over the last five days on its CXE lit order book on April 10, excluding auctions, according to its website.

The CXE lit order book share is 1.36% higher than on April 4 when it had an average 20.61% share of European trading over the previous five days, excluding auctions.

The London Stock Exchange Group had a market share of 22.41%, excluding auctions, on April 4 and 20.44% on April 10 according to the Bats Chi-X Europe website.

Dave Howson, chief operating officer of Bats Chi-X Europe, said in an email to Markets Media: “Our customers are already responding very well to our pricing adjustments. In giving our customers the flexibility to benefit from higher trading volumes, we enhance the overall liquidity available on our platform.”

Last month Bats Chi-X Europe reported an overall market share of 20.4% for European equities trading, down from 22.5% in March 2013 according to a statement.

However average daily notional value increased from €7.86bn to €8.87bn over the same time period.

In March BXTR,the pan-European trade reporting facility launched by the exchange last year, set a new monthly market share record of 57% according to Bats and Thomson Reuters, including a one-day record of more than €19bn of transactions on March 26.

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