BATS Exchange (formerly BATS Trading) and Direct Edge both reported increases in matched market share in December.
Direct Edge’s matched market share grew to a record 6.93% in December, compared with 5.49% the previous month and 4.29% in December 2007. BATS’ December matched market share was 10.46%, up from 10.37% in November and 6.30% in December 2007.
Both firms also reported increases in trading volumes. Direct Edge handled 1.1 billion shares a day in December – a 108% year-on-year increase from the 522.7 million share average daily volume for December 2007. BATS’ average daily matched volume was 918.8 million shares, up from 371.7 million shares in December 2007. Handled volume refers to all orders sent to a venue, while matched volume refers only to those orders that were executed on a venue.
BATS completed the transition from an electronic communications network (ECN) to an exchange on 7 November last year. And on 23 December, Direct Edge took a further step towards attaining exchange status when it finalised its acquisition of the ISE Stock Exchange, a subsidiary of the International Securities Exchange. December was the first month that ISE Stock Exchange’s volume was included in Direct Edge’s overall total.
Direct Edge is continuing to pursue exchange status for EDGA and EDGX, its two trading platforms.