US exchange operator BATS Global Markets has unveiled plans to launch a second US equities exchange in early 2010 called BYX.
BATS is preparing to formally file an application with the US Securities and Exchange Commission for a new equities exchange in the coming weeks.
BYX will use the same technology, location and connectivity as BATS’ existing US equity exchange. Pricing will be announced at a later date.
“BYX will allow us even greater flexibility in pricing and innovation that will result in more choices for the industry,” said Joe Ratterman, CEO of BATS Exchange and BATS Global Markets, in a statement.
Direct Edge, which plans to make the transition from electronic communication network to exchange status in Q4 this year, operates two equity trading platforms, EDGX and EDGA, which operate different pricing policies. The New York Stock Exchange offers equity trading on both its main market and its NYSE Arca platform. Nasdaq also operates a secondary market, Nasdaq OMX BX, which it acquired when it bought the Boston Stock Exchange.
In addition to its existing US equities exchange, BATS Global Markets operates a pan-European multilateral trading facility and will also launch a US options exchange in Q1 2010.