BATS PROPOSES ELIMINATION OF ONE-SIZE-FITS-ALL U.S. EQUITY MARKET, REDUCTION OF SOME ACCESS FEES BY MORE THAN 80%01.06.2015
Tiered Access Fee Proposal Also Designed To Encourage Trading in Less Liquid Securities
KANSAS CITY, Mo., and NEW YORK – January 6, 2015 – BATS Global Markets (BATS) today proposed
market structure initiatives designed to benefit all investors and issuers, including a reduction of more
than 80% in access fees for the U.S. stock market’s most liquid securities.
In an open letter to the industry and a petition for rule-making to the Securities and Exchange
Commission, the company will propose the implementation of tiered market access fees, depending upon
an individual security’s average daily volume, beginning at $0.0005 per share (five cents per 100 shares)
for the most liquid U.S. securities. Reduced access fees would also result in reduced rebates in those
stocks. For those accessing exchange liquidity in the 200 most actively traded U.S. stocks, BATS
estimates market-wide savings may exceed $850 million annually.
“While the highly efficient, fair and transparent U.S. equity market is widely viewed as the world’s most
competitive market, a one-size-fits-all approach may no longer best meet the needs of end investors,
issuers and the industry’s many participants,” BATS CEO Joe Ratterman said. “The market has long been
defined by its continuous quest for improvement, and we believe a material reduction in access fees for
the most liquid securities, coupled with an intelligently tiered approach for less liquid stocks, is an
excellent place to begin.
“We look forward to a broad discussion of this proposal and other key market structure topics in the
months ahead, and we thank SEC Chair White for her continued leadership,” Ratterman said.
BATS also suggests the following:
Greater Order Handling Transparency. Alternative trading systems should be required to provide
their rules of operation to customers, and Rules 605 and 606 of Regulation NMS should be amended
to require additional disclosure of achieved execution quality on a broker-by-broker basis.
Higher Standards for Small Trading Centers. Regulation NMS should be revised so that, until anexchange or other currently protected market center achieves greater than 1% share of consolidated average daily volume in any rolling three-month period, it should no longer be protected under the trade-through rule, and not share in, or otherwise receive any NMS plan market data revenue. This addresses the concerns of many market participants regarding how the current structure may artificially subsidize competition or encourage complexity that does not address a market need.
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About BATS Global Markets, Inc.
BATS Global Markets, Inc. is a leading global operator of securities markets, committed to Making
Markets Better for traders, investors and issuers. In the U.S., BATS operates four stock exchanges –
BZX, BYX, EDGX and EDGA – and regularly ranks as the top market for ETF and retail-driven liquidity.
The company is an important listing venue for ETFs and other structured products and also operates
BATS Options, a U.S. equity options market. In Europe, BATS operates the largest pan-European
equities exchange, offering trading and listing services across 15 major European markets.
With its world-class proprietary technology and relentless customer focus, BATS strives to bring efficiency, transparency and fairness to market participants. The company is headquartered in Kansas City with offices in Chicago, the New York area and London. Further information on BATS can be found at www.bats.com and by following us on Twitter @BATSGlobal.
Randy Williams (NYC) +1.212.378.8522
Jim Gorman (NYC) +1.201.942.8234
Stacie Fleming (KC) +1.913.815.7193
Hannah Randall (London) +44.207.012.8950
Randy Williams (NYC) +1.212.378.8522