BATS Acquires Stock Exchange Direct Edge

February 03, 2014

BATS’ acquisition makes it the No. 2 U.S. stock exchange by trading volume.

BATS Global Markets Inc., the up-and-coming U.S. stock exchange by trading volume, on Jan. 31 completed its acquisition of Direct Edge Holdings LLC, another exchange operator, in a transaction that will make the new BATS the No. 2 U.S. stock exchange by trading volume.

Financial terms weren’t disclosed.

The new entity will operate under the BATS Global Markets name and will remain headquartered in the Kansas City, Mo., area. Direct Edge was based in Jersey City, N.J. with additional offices in London and the New York City area.

BATS Chief Executive Officer Joe Ratterman will be CEO of the new entity, while former Direct Edge CEO William O’Brien will serve as the new BATS president.

In January, combined U.S. market share of the BATS and Direct Edge exchanges reached 20.54 percent compared with U.S. exchanges operated by NYSE Euronext (20.58 percent) and Nasdaq OMX (20.02 percent), according to data from BATS.

In Europe, BATS finished January as the largest stock exchange, with market share of 22.11 percent.



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