BATS Listings Approved
Regulators give BATS the green light to begin competing with the New York Stock Exchange and Nasdaq in the U.S. equity listings business.
BATS had originally filed with the Securities and Exchange Commission back in mid-May of this year. Regulators approved the filing this week, giving BATS the ability to begin courting non-listed companies to its BZX exchange.
The move into listings represents a huge opportunity for the exchange. Nasdaq is rumored to make nearly 30% of its profits from its listings business and NYSE also does good business vis-à-vis listings.
Breaking into the duopolistic market held by NYSE and Nasdaq will be difficult. BATS are currently in the process of courting market makers to the exchange, an often overlooked but key component in making an exchange and its respective listings business work effectively. BATS also prides itself on implementing and developing high-speed technology to cater to equity traders using its trading venues.
BATS spokesperson Stacie Fleming said that company could not comment any further as it is currently in a quiet period. Further details on the market maker program will be made in “due time” according to Fleming.
BATS recently completed its acquisition of European dark pool Chi-X Europe which it will then merge with its existing European operations. Its U.S. equities market share has increased 11.5% year-over-year.
The priority should be to ensure continuity of cross-border services and avoid market fragmentation.
Nearly a dozen retail brokers have joined to evaluate how market infrastructure and rules should evolve.
With Adam Conn, Head of Trading, Baillie Gifford
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