Bats completes acquisition of FX swap execution facility

Bats has integrated Javelin into its Hotspot FX trading platform.

Bats Global Markets announced the completion of its acquisition of FX swap execution facility (SEF) Javelin, following approval from the US regulator.

The Commodity Futures Trading Commission (CFTC) finalised its approval for Bats to acquire Javelin on 23 October this year.

Javelin has been integrated with Bats Hotspot - its FX institutional trading platform – to provide trading in non deliverable forwards (NDFs).

The move is in response to Dodd-Frank rules that require certain market participants to trade NDFs on SEFs.

Chris Concannon, chief executive officer at Bats Global Markets, explained the acquisition will “broaden the instruments available to trade on Bats Hotspot.”

Bats’ FX trading platform saw an average daily volume traded in September of $28.3 billion, according to its monthly statistics.

The exchange’s acquisition follows news of the Chicago Options Board Exchange’s (CBOE) intentions to acquire Bats Global Markets for over $3 billion.

The mega-merger will provide CBOE with a gateway into the European equity and exchange traded fund market.