BATS Global Markets

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BATS Global Markets
image:Bats_logo.jpg
Founded 2005
Headquarters Kansas City, Missouri, U.S.
Key People Joe Ratterman, President and CEO; Chris Isaacson, COO
Web site www.batstrading.com

BATS Trading is a second generation[1] electronic communication network (ECN) founded in June 2005 by David Cummings, owner of Tradebot Systems in Kansas City. [2] in response to consolidation in the exchange space. The BATS electronic network is designed to "handle high-speed, high-volume, anonymous, algorithmic trading."[3][4] BATS launched trading on Jan. 27, 2006 and quickly became the third-largest[5] U.S. equities market by volume as it grabbed 10 percent of United States equities markets two years after it opened for trading in January 2006.[6][7] BATS is based in Kansas City, Mo. and has additional offices in New York and London.

Bats’s stock exchange turned profitable in 2008.[8]

The company is privately held and is majority owned by brokers and big banks including Getco, Wedbush, Lime, Citi, Credit Suisse, Morgan Stanley, Deutsche Bank and JPMorgan.[9]

However, Joe Ratterman, the company's chief executive officer, said in August 2010 that the company was considering an initial public offering. He also said BATS would expand to new products. [10]

Included in the BATS customer base are more than 270 broker-dealers and a broad-based ownership group of financial companies.

Contents

Background

Cummings used an ambitious email campaign to sway traders to use BATS.[11][12] In January of 2006, BATS implemented an aggressive pricing scheme that rewarded liquidity providers in an effort to entice broker-dealers to trade on BATS.[13][14] Cummings was replaced by Joe Ratterman as CEO on July 1, 2007.[15]

BATS has received approval from the Securities and Exchange Commission to become a securities exchange. Its application is available on the Securities and Exchange Commission (SEC) Web site.

It also received SEC approval to launch a U.S. equity options exchange, BATS Options, which it introduced in February of 2010.

Key People

News

  • On June 2, 2008, BATS said it had picked a unit of Belgium's Fortis to provide clearing services for its new London-based European electronic exchange.[17][18]
  • On June 4, 2008, Liquidnet announced BATS had become its 22nd Streaming Liquidity Partner. This alliance enables Liquidnet's nearly 500 member firms, via Liquidnet H2O, unique access to approximately 700 million additional shares of liquidity per day. BATS has integrated the ability to cross with Liquidnet H2O via its Dark Scan order type.
  • In June of 2009, BATS announced that it executes 80 percent of its orders in less than 400 microseconds.[20]
  • On August 6, 2009, BATS voluntarily withdrew its version of a flash order type in response to controversy and the threat of potential regulatory intervention.[22]
  • On December 18, 2009, BATS announced plans to launch a listings market by the summer of 2010.[23]
  • On Jan. 27, 2010, BATS received approval from the SEC to launch a U.S. equity options trading platform. BATS said it plans to launch the platform on February 26, pending testing and industry-wide options symbology consolidation.
  • On February 26, 2010, BATS Options started trading with it's first transaction taking place based on an Apple contract (APPL). The company is targeting a 4% market share in U.S. Options for 2010. [24]

External links

References

  1. ↑ Trading Upstart BATS Tops 1 Billion Volume Mark. Forbes.com. Retrieved on March 10, 2008.
  2. ↑ Founder, CEO of BATS Trading to Leave. Boston.com. Retrieved on March 10, 2008.
  3. ↑ Merrill Buys BATS Trading Stake. Boston.com. Retrieved on March 10, 2008.
  4. ↑ New ATSs Arise to Fill a Void. Wall Street & Technology. Retrieved on March 10, 2008.
  5. ↑ Capitalists of the Prairie. Newsweek. Retrieved on September 30, 2008.
  6. ↑ BATS Trading's Exchange Application is Open to Public. Kansas City Business Journal. Retrieved on March 10, 2008.
  7. ↑ Upstart Financial Firm Bats is Challenging NYSE, Nasdaq. Arizona Republic. Retrieved on March 10, 2008.
  8. ↑ BATS Global Markets Considers Initial Stock Sale, International Expansion. Bloomberg. Retrieved on August 31, 2010.
  9. ↑ BATS Exchange to launch IPO service. Financial Times. Retrieved on December 18, 2009.
  10. ↑ BATS Global Markets Considers Initial Stock Sale, International Expansion. Bloomberg. Retrieved on August 31, 2010.
  11. ↑ No More Dave-Mails for BATS Clients. Reuters. Retrieved on March 10, 2008.
  12. ↑ BATS Trading CEO Cummings Likes Being the Catalyst. Kansas City Business Journal. Retrieved on March 10, 2008.
  13. ↑ Swinging At Nasdaq. Forbes.com. Retrieved on March 10, 2008.
  14. ↑ BATS Trading Considers London Move. Reuters. Retrieved on March 10, 2008.
  15. ↑ BATS Trading Promotes Executive to COO. Kansas City Business Journal. Retrieved on March 10, 2008.
  16. ↑ Press Release. BATS. Retrieved on May 7, 2008.
  17. ↑ BATS Trading Picks Fortis for European Clearing. Reuters. Retrieved on June 5, 2008.
  18. ↑ BATS Selects European Clearer. Reuters. Retrieved on June 5, 2008.
  19. ↑ "SEC Approves BATS Exchange". The Wall Street Journal. Retrieved on August 19, 2008.
  20. ↑ Exchanges in a Race to Zero Latency. Traders Magazine. Retrieved on September 26, 2009.
  21. ↑ Press Release. BATS. Retrieved on July 8, 2009.
  22. ↑ Nasdaq MTF will not drop BLNK despite 'flash' controversy. The Trade News. Retrieved on August 24, 2009.
  23. ↑ BATS To Compete with NYSE and Nasdaq for Listings. Wall Street & Technology. Retrieved on December 18, 2009.
  24. ↑ Bats Options Market Reports First Trades Executed. Wall Street Journal. Retrieved on February 26, 2010.
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