BATS Chi-X Europe’s trade reporting service will not suffer the same fate as rival Markit Trade Reporting, which is to be closed next year, due to major differences in its business model.
Last week, Markit told clients it will close the trade reporting service, formerly known as Markit BOAT in September next year, shortly after BATS Chi-X Europe unveiled its own trade reporting service, citing insufficient demand for off-exchange data.
Mark Hemsley, CEO of BATS Chi-X Europe, told theTRADEnews.com that the decline of Markit’s service does not influence the BATS offering as differences in its business model will make it more viable.
“While we had to modify our systems to be able to offer the reporting service, much of the technology we needed was already in place as part of the way the exchange operates and so the costs have been kept much lower,” he said.
Hemsley hopes the BATS offering, which will collect trade data both on-exchange and off-exchange, covering regulated exchanges, multilateral trading facilities and OTC trading such as on broker crossing networks, will shake up trade data provision in Europe.
In the past, much of the data provided to the market came from national exchanges and was expensive. Markit’s reporting service was designed to drive down costs but questions had been raised over the accuracy of data submitted to Markit and the sustainability of its model.
Hemsley believes the BATS Chi-X offering will be able to achieve the cost savings the market needs while ensuring data quality remains high: “For a long time, data has been far too expensive and not accurate enough. We’re hoping to displace those providing expensive data services while also improving the quality of data because, as a regulated investment exchange, we’re also able to take actions against those who provide incorrect data.”
The service has already signed up Citigroup, Credit Suisse, JP Morgan, Morgan Stanley and UBS. Reported data is available through existing BATS Chi-X Europe feeds and trade reports will be accessible via Bloomberg and Thomson Reuters.