BATS Europe, a US-exchange backed multilateral trading facility (MTF), will become the first alternative venue in Europe to compete with domestic exchanges for trading after the close.
Two new order types – market on close and trading at last – will be made available on BATS Europe by August.
The new service will allow the MTF’s members to enter orders throughout the trading day to be executed when the official closing price of the primary exchange is published. Market participants will also be able to continue entering orders for immediate execution at the closing price, where liquidity is available.
According to BATS Europe CEO Mark Hemsley, the MTF’s market on close service will be priced competitively and aid trading in size.
“As our market share continues to increase, we are pleased offer a market on close service in response to participant demand, which will be priced at an attractive rate when compared to the primary markets,” said Hemsley in a statement. “The addition of crossing functionality to our suite of services will create the opportunity for more efficiency in the market by allowing participants to execute large blocks without the fear of the price moving against them.”
BATS Europe gained a 3.65% share of total European trading on 12 June, according to its own figures, which are widely regarded as accurate. Excluding primary exchange auctions, BATS’ market stood at 4.09%.
Initially, market on close services will be rolled out for the most heavily traded stocks on BATS Europe: FTSE 100; CAC 40; and DAX. The new order types will be made available for testing in June, subject to approval by UK regulator, the Financial Services Authority.