Market centre operator BATS Global Markets has launched its second US equities exchange, BYX, which will offer members a rebate for removing liquidity.
BYX will go live today with four stocks: Apple. Advanced Micro Devices, Diamonds Trust and Viacom class B stock, with a full rollout of US equities scheduled for 22 October.
Liquidity removers will be offered a $0.0003 per share rebate, which BATS claims is the highest liquidity removal rebate among US exchanges. There will be no charge for posting displayed liquidity to the BYX book.
“With BYX, we are offering market participants a second BATS platform for trading US equities built on our world-class technology with differentiated pricing and routing,” said Joe Ratterman, CEO of BATS Global Markets and BATS Exchange. “Industry feedback has exceeded our expectations with more than 100 firms approved as BYX members and over 50 already certified to begin trading.”
BYX will be hosted in the Savvis New Jersey data centre, which also houses BATS Exchange, which switched from an electronic communications network to an exchange in August 2008, and BATS Options, which launched in February 2010.
BATS' second exchange launch closely follows a similar move by rival market operator Direct Edge, which gained exchange status for its EDGX and EDGA platforms in July.