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BATS To Compete with NYSE and Nasdaq for Listings

Kansas City exchange hopes to offer listings next summer, to attract small companies, exchange-traded funds and companies that don't meet the existing U.S. exchanges' standards.

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.

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