US exchange groups Nasdaq OMX and BATS Trading launched new platforms today to expand their client bases and strengthen their competitive position in global equities trading.
BATS Trading has gone live today as a full exchange in the US, having previously operated as an electronic communications network. The platform will undergo a nine-day transition phase, starting with two symbols – Aeropostale (ARO) and Arena Pharmaceuticals (ARNA) – and ramping up to the full range of US equities on 6 November. BATS received its exchange licence from the US Securities and Exchange Commission on 18 August, after filing its application in November last year.
BATS is also gearing up to launch its European multilateral trading facility (MTF). Having received its MTF licence from the UK’s Financial Services Authority on 14 October, BATS Europe will start trading 10 UK stocks on 31 October, and will open up to all London Stock Exchange, Euronext and Xetra stocks over the next few weeks, culminating in full trading on 19 November.
Also from today, Nasdaq OMX Europe, a rival MTF, is trading its all 500 stocks listed in its initial launch schedule. The platform also started trading five constituents of Italy’s MIB 30 index, and will trade the entire Italian index from 31 October. The MTF is planning to add Austrian and Irish stocks to its list in November. Nasdaq OMX Europe began its roll-out on 26 September, trading 25 stocks from the UK’s FTSE 100 index.
The MTF stepped up pressure on rival exchanges and MTFs yesterday when it launched a pricing promotion, which boosted the rebate portion of its maker-taker pricing model to 0.25 bps from 0.20 bps, and cut the fee portion to 0.25 bps from 0.30 bps. The promotion will begin on 3 November and will be reviewed at the end of the year.