Market centre operator BATS Global Markets has got the go-ahead from US regulator the Securities and Exchange Commission to launch a second equities exchange.
BATS, which currently operates BATS Exchange (BZX), expects to launch its new market, BATS Y-Exchange (BYX) within 60 days. BATS will seek to differentiate BYX from BZX by offering different pricing structures.
BZX made the transition from an electronic communications network to an exchange in October 2008 and currently accounts for around 11% of US equity market share.
Current BZX members will be allowed a 90-day grace period to compete the BYX waive-in process. Like BZX, there will be no membership fee for joining BYX.
“BYX will utilise the same world-class technology, customer service model and group of associates that has made BZX a success while offering more innovative solutions to members such as greater flexibility in pricing,” said BATS Exchange chief executive Joe Ratterman.