BATS Trading Inc., one of the fastest-growing top-tier equity markets in the U.S., according to WSJ – it has received approval from the Securities and Exchange Commission to operate as a registered national securities exchange.
The Kansas City-based company, which will compete against NYSE Euronext’s New York Stock Exchange and Nasdaq OMX’s Nasdaq Stock Market, it cornered in July more than 10% of the market in average daily matched market share.
The co. was founded in June 2005 and launched trading on its electronic network on Jan. 27, 2006. By the following January, more than 3 percent of daily trading volume in the U.S. equities markets was executed on the BATS system. BATS reached its first billion shares traded volume in a single day on Jan. 23.
The unit of BATS Holdings filed for exchange status in November 2007.
BATS Trading gives its users market data for free while offering heavy discounts on trading fees. The co. also promises faster execution of buy and sell orders. Its owners include affiliates of many large banks and Wall Street brokers, including Citigroup, Credit Suisse, Deutsche Bank, Lehman Brothers and Morgan Stanley.
Having reached a full-exchange status will speed BATS’ growth even more and will simultaneously reduce risks associated with over consolidation in the ECN and Exchange industry. BATS Exchange is set to open in about two months.