Bats to Launch “BAM” Options Auctions, Offering Competitive Price Improvement Opportunity08.02.2016
Bats.co – KANSAS CITY and NEW YORK – August 1, 2016 – Bats Global Markets, Inc. (Bats: BATS) announced today plans to launch the Bats Auction Mechanism (BAM), new functionality that provides price improvement opportunities for orders sent to its EDGX Options Exchange.
Bats plans to launch BAM in November, pending SEC approval. The company’s two U.S. options exchanges, EDGX and BZX, set a combined record with market share of 11.7% in June while remaining the market leader in single-leg equity options trades with 19% market share.
BAM is an options auction process that provides Members with an opportunity for price improvement for the Member’s client orders. The BAM functionality alerts all Members at the start of an auction in order to maximize the price improvement opportunity and allows agency orders to trade against the contra party specified by the initiating Member or other Members responding to the auction.
In addition, Bats will introduce a new feature called the Priority Quote Allocation. This functionality provides incentives for a broader range of participants to maintain two-sided quotes, which helps to keep tighter bid-ask spreads in continuous market trading.
Bryan Harkins, Executive Vice President and Head of U.S. Markets at Bats said “BAM is the natural evolution for the Bats Options business as we move to serve customer needs beyond our market-leading price-time priority options exchange, BZX. We are deeply committed to the U.S. Options market and plan to aggressively expand our product suite to deepen liquidity and improve the execution experience for market participants in the coming months.”
BAM will run continuously throughout the trading day on EDGX, the pro-rata Bats’ options market launched in November 2015.
CEDX is planning to expand its range of products in 2023, subject to regulatory approvals.
An estimated 200 SGX-listed fixed income securities already meet the criteria.
More than 20 Core Climate participants have traded 400,000 tonnes of carbon credits in the first month.
Turquoise, FlexTrade Systems and OpenFin have delivered a game-changing innovation.
The new service to help asset managers and institutions comply with TCFD requirements.