US-based trading venue operator BATS Global Markets and pan-European multilateral trading facility (MTF) Chi-X Europe have issued a statement confirming that exclusive negotiations regarding the potential merger have been extended.
BATS Global Markets, which operates BATS Exchange in the US and MTF BATS Europe, was identified as a potential bidder for Chi-X Europe in September 2010.
Ongoing talks over the future of Chi-X Europe have been overshadowed recently by separate announcements that the London Stock Exchange will be merging with Canadian exchange group TMX, and a potential deal between Deutsche Börse and NYSE Euronext, which are advanced discussions over a possible merger.
It is expected that a combined BATS-Chi-X would continue to operate at a low cost base, given the synergies that can be achieved in technology and other areas.
Chi-X Europe had 16% of pan-European equity market share in January 2011, compared to BATS' 6.5%, according to data from Thomson Reuters.