Bats expands FX unit with acquisition

Bats to acquire SEF firm Javelin to be integrated into its Hotspot FX business.

Bats Global Markets has acquired a swap execution facility (SEF) operator as it moves to expand its foreign exchange (FX) product offering.

Javelin is based in the US and offers swaps trade execution through limit order book and request for quote models.

Through acquiring Javelin, Bats will add to its foreign exchange offering by trading non-deliverable forwards (NDFs), which the Dodd-Frank Act requires be traded on SEFs.

A survey carried out by the Bank for International Settlements found that total daily NDF turnover was $127 billion as of 2014.

Chris Concannon, Chief executive of Bats Global Markets, said the transaction will “broaden the instruments available to trade on Bats Hotspot.”

Hotspot is a Bats company which allows participants to trade FX anonymously and, once the acquisition is completed, Javelin will be integrated into Bats Hotspot.

The acquisition is subject to regulatory approval and deal terms were not disclosed.

Bats recently announced plans to launch an equities block trading platform which incorporates BIDS Trading technology in the US.

Speaking with The Trade about the platform, Mark Hemsley chief executive of Bats Europe, said the platform combines buy- and sell-side activity.