BATS Europe, the multilateral trading facility (MTF) owned by US exchange group BATS Global Markets, plans to extend its after hours trading service to include German and French stocks from the middle of next month.
From 16 April, DAX and CAC 40 stocks will be available for both BATS Europe’s trading at last (TAL) and market on close (MOC) order types, in addition to FTSE 100 stocks. BATS launched TAL and MOC for FTSE 100 stocks in October 2009.
The MOC order type allows 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, while the ‘trading at last’ order type will allow participants to continue entering orders for immediate execution at the closing price, where liquidity is available.
Both order types will continue to be free of charge across all available stocks, which BATS claims will substantially reduce the cost of trading at the close compared to other market venues.
The closing price of a stock is determined at around 16.35 each day by the listing market of each stock. If a member enters a limit price that is better than the official closing price, the order will be rejected.
To minimise the amount of development work required to access the after hours service, BATS Europe has also made it possible for customers to submit orders to execute at the official closing price using regular market and limit order types.
Furthermore, BATS Exchange, the group’s main US equities exchange, will launch a new order type and adjust its fee schedule from 1 April.
The new BATS+DART order type first attempts to fill orders on BATS’ own order book before routing orders on to dark liquidity partners (DLPs). The charge for removing liquidity on BATS Exchange using BATS+DART is $0.0025 per share, and the charge for routing orders to DLPs is $0.0020.
The charge for standard smart order routing will be increased to $0.0028, up from $0.0027, while the fee for the BATS+Nasdaq One Under type has been standardised to £.0039 for all tapes.
The new order types and fee changes are due to come into force on 1 April, pending approval from US regulator the Securities and Exchange Commission.