Electronic exchange looks to muscle in on listings business of NYSE and NASDAQ
BATS Global Markets, the stock exchange operator, has announced it will offer free listings to companies that trade more than 2 mn shares per day as it ramps up competition with the NYSE and NASDAQ OMX.
The firm, which launched a primary listings business in the US late last year, also said it plans to operate a flat pricing model for issuers and will waive initial fees for those transferring from other exchanges.
Launched in 2005, BATS has successfully poached trading volume from the established exchanges in the US and Europe and is now looking to compete in the market for listings.
In January, BATS’ two US exchanges captured 11 percent of equities trading, making it the third-largest exchange by volume in the country.
In Europe, meanwhile, BATS recently received clearance to take over Chi-X Europe, another electronic trading venue. The combined exchange will process around 25 percent of European equities trading.
First listings
BATS’ listings business is yet to sign up any companies, but in January it announced that BlackRock’s iShares would list eight exchange-traded funds on its listing platform.
‘As we strive to make markets better for issuers today, we’re focused on driving competition and innovation in the US primary markets through new ‘out of the box’ programs and pricing,’ comments Joe Ratterman, chairman and CEO of BATS Global Markets, in a prepared statement.
BATS faces stiff competition from the NYSE and NASDAQ for issuer attention, which both had free services bundles approved by the SEC in the second half of 2011.
