US options drives record revenues for Bats

Bats reported a 50% in net income in 2016 compared to the year prior.

Bats Global Markets saw record revenues in the fourth quarter last year, with US options driving the growth with a 33% increase.

The US options business saw revenues increase from $8.2 million in the fourth quarter in 2015, to $10.9 million in the same period in 2016. 

Total annual net revenues at the exchange operator were 13% higher in 2016 than the year prior, totalling $436 million, as net income surged 50% to a record $32.5 million.

Chris Concannon, chief executive officer at Bats Global Markets, said the fourth quarter “capped off an impressive year for Bats.”

Bats added the proposed merger with CBOE - announced last year - is on track for completion in the first quarter this year, although the transaction remains subject to regulatory approval.

The $3.2 billion deal will see CBOE acquire Bats Global Markets and provide the US based exchange with a gateway into the European equity and ETF market.

Concannon said: “As we move towards closing the pending transaction with CBOE Holdings in the first quarter, we are excited about the opportunities before us in 2017.”

“Bats and CBOE share a similar mission to make trading more competitive for all market participants and we will leverage our mutual resources to create greater market efficiencies and expanded opportunities for the trading and investing community.”

The exchange group added the roll-out of a newly established large-in-scale trading platform for the European equity market is also on track for the first quarter this year.

Bats LIS is an indication of interest (IOI), negotiation and execution platform that allows participants to negotiate large blocks in European equities without revealing intentions to the wider market.

Mark Hemsley, chief executive officer at Bats Europe, told The Trade at the time of the announcement, the platform combines buy- and sell-side activity with the buy-side controlling their indications of interest up until they wish to firm-up and handover to their designated sell-side broker who executes the block trade.