US equities trading platform Direct Edge achieved a record matched market share of 12.90% of US equities trading in August, up from 11.80% in July. It has also become the second-largest trading venue for Nasdaq-listed stocks, surpassing NYSE Arca.
Meanwhile, rival equities venue BATS Exchange’s US matched market share fell to 9.98% in August from 10.73% in July.
Direct Edge’s August matched market share marks the platform’s return to the 12% range. The ECN’s market share of US equity trading jumped to 12.54% in April from 10.59% in March, and rose further to 12.55% in May. However, it slumped to the 11% range for the following two months.
BATS’ matched market share of US equities has also fluctuated over the year. Having started 2009 in the 11% range, hitting a new record of 11.39% in February, the exchange’s matched market share slumped to 10.01% by April, then rebounded over the next three months to hit 10.83% in July.
Direct Edge is the third-largest US equities trading platform by matched market share behind exchange groups NYSE Euronext and Nasdaq OMX. It overtook BATS in April this year.
BATS converted to an exchange from an ECN in November last year. Direct Edge expects to make the transition in Q4 this year, having filed its application with the US Securities and Exchange Commission in May.