US equities trading venue BATS Exchange has announced plans to enter the listings market, opening up a new front of competition against rival incumbent exchanges. The exchange plans to launch the new service by summer 2010.
“As one of the largest stock exchanges in the world, we are excited to once again provide a competitive alternative to incumbent exchanges by expanding into the US listings market,” said Joe Ratterman, chief executive of BATS Global Markets and BATS Exchange.
Since its US launch in 2005, BATS has become one of the main challengers to the dominance of Nasdaq OMX and NYSE Euronext. According to its own figures, BATS Exchange accounted for 9.6% matched market share in the US during November.
“Based on feedback from our members, investors and the investment community, we believe there is an incredible opportunity to compete in the listings business and satisfy unmet needs of current and future public companies and exchange-traded funds in the US,” added Ratterman. “Stock markets have historically played an important role for companies in gaining access to growth capital, and as a major player among global stock exchanges, we felt it was important for BATS Exchange to help our customers find solutions to their capital needs.”
As well as expanding into listings, BATS Exchange plans to launch a second US equity exchange called BYX, and an equity options exchange, both due to launch in early 2010, subject to regulatory approval.