BATS-Direct Edge markets increase share in December

The four exchanges that will operate under the BATS Global Markets brand increased their overall monthly market share in December, but the New York Stock Exchange’s two markets held the dominant position for the month, closing out a strong year of market performance.

The four exchanges that will operate under the BATS Global Markets brand increased their overall monthly market share in December, but the New York Stock Exchange’s two markets held the dominant position for the month, closing out a strong year of market performance.

Overall, the US equity market surged ahead 5.6% in 2013 to a total of US$50.9 trillion in value traded, from US$48.2 trillion in 2012, although a far cry from the strong performance witnessed in 2011, where the annual trading figure reached US$58.5 trillion.

For December, total trading on NYSE’s two markets totaled US$1.043 trillion, giving the exchange group a market share of 25.45% of US equities for December, up from 25.26% in November, according to data from Thomson Reuters Equity Market Share Reporter.

The two order books operated by Direct Edge that will soon come under the BATS brand and BATS’ own two exchanges reached a combined total of 21.85% market share with US$899.1 billion in equities traded for December, up from the November figure of 21.78% in November.

The US Department of Justice in October approved the planned merger of BATS Global Markets and Direct Edge, which now awaits assent from the Securities and Exchange Commission (SEC). The deal is expected to be finalised in the first half of this year.

Nasdaq continued to perform strongly, attracting 17.21% market share in US equities, with US$708.2 billion traded, down slightly from 17.26% and US$693 billion traded in November.

Total trading figures for December reached US$4.1 trillion, down from US$4.9 trillion seen in November, due to the seasonal dip and fewer trading days.

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