Although BATS Exchange, an alternative U.S. securities exchange, already competes with NYSE Euronext and Nasdaq for equities order flow, today the Kansas City, Mo. firm announced plans to launch a listings market by summer of 2010. BATS, which officially became a U.S. exchange last year, is said to be interested in attracting small companies and exchange-traded funds to its fold, including those that don't meet the NYSE's and Nasdaq's standards.
"We are excited to once again provide a competitive alternative to incumbent exchanges by expanding into the U.S. listings market," said Joe Ratterman, chief executive of BATS Global Markets and BATS Exchange, in a statement.
In four years, BATS Exchange says it has obtained 10% market share in U.S. equities while BATS Europe, operating as a pan-European multilateral trading facility, executes 8% of the FTSE 100.
BATS Exchange recently filed with the SEC to launch U.S. equity options trading and it's planning a second U.S. equities exchange due to launch in early 2010. BATS is owned by a consortium including JPMorgan Chase, Citigroup, Morgan Stanley, Credit Suisse, Deutsche Bank and Getco.