Click on the questions below to display the answer.
What is BATS?
BATS Global Markets, Inc. (BATS) is a leading operator of securities markets in the U.S. and Europe. All of the BATS markets are fully electronic, enabling clients to easily trade stocks and/or options.
In the U.S., BATS operates two stock exchanges, the BZX Exchange and BYX Exchange, also known as the BATS Exchanges. These are registered national stock exchanges that compete with the New York Stock Exchange and NASDAQ. BATS is the third-largest stock exchange operator in the U.S., handling 11-12% of U.S. equities trading volume every day. BATS also operates a U.S. equity options market known as BATS Options.
Overseas, BATS Chi-X Europe competes with major European stock exchanges such as the London Stock Exchange and Deutsche Borse as a Recognised Investment Exchange (RIE) offering pan-European equities trading. Unlike the national stock exchanges, BATS Chi-X Europe allows participants to trade securities across Europe. Currently, securities from more than 15 European countries are traded via the BATS Chi-X Europe platform.
Does BATS trade stock?
BATS is NOT a trading company. BATS operates electronic markets where broker-dealers and other financial firms, connect to BATSâ markets to execute their trades.
Isn't BATS an alternative trading system?
Since 2008, BATS has operated registered national securities exchanges in the U.S. When BATS launched in June 2005, the company was known as BATS Trading, Inc., and was an alternative trading system (ATS). However, in 2008, the company transitioned from an ATS to BATS Exchange, a registered national U.S. stock exchange that competes with the New York Stock Exchange and NASDAQ. As the company expanded into Europe in 2008, the parent company became known as BATS Global Markets.
When BATS launched the BYX Exchange, its second U.S. equities exchange, in October 2010, BATS Exchange, the companyâs initial U.S. equities exchange, became known as the BZX Exchange.
Is BATS an acronym?
When BATS was founded in 2005, the name stood for "Better Alternative Trading System." As the company is no longer an alternative trading system and instead an operator of registered national stock exchanges in the U.S. and a Recognised Investment Exchange (RIE) in Europe, the acronym no longer applies. The BATS brand and reputation continues to stand for cutting-edge technology, innovation, and great customer service.
Who are some of the customers that trade on BATS?
BATS does not disclose member lists, but in general, BATS members include broker-dealers, retail brokers, professional traders, institutional investors, etc. In general, the same firms that trade on our primary competitors NYSE, NASDAQ, the London Stock Exchange, Deutsche Borse, and other exchanges also trade on the BATS markets.
Can individual investors trade on BATS' markets?
Indirectly, yes. While individual investors do not connect directly to stock exchanges, they do trade through their broker, which is likely connected to BATS (and other markets) to execute trades.
Does BATS cater to specific types of customers?
No. One of BATS' fundamental goals is to operate neutral, fair and balanced markets that cater to all market participants.
Can companies list their stock on BATS?
In the U.S., the BATS Exchange, or BZX Exchange, became a U.S. primary listing venue in December 2011. While BATS does not currently offer listing services for corporations, we do provide a new venue for listing exchange-traded products (ETPs).
If a company's stock is not listed on BATS, does the stock trade on BATS' stock exchanges in the U.S.?
While a specific stock might be listed on the New York Stock Exchange, on any given day, a substantial portion of the trading of that stock could take place on one of BATS' U.S. equities exchanges, or on other exchanges and trading platforms.
Why does BATS need two stock exchanges?
In order to increase U.S. market share and further appeal to market participants, in October 2010 BATS launched the BYX Exchange, a second U.S. equities exchange. Like the BZX Exchange, the BYX Exchange offers equity trading, but targets different market segments than BZX by offering an alternative pricing approach.
Kansas City doesn't seem like the typical place for a stock exchange to be located. Why is BATS headquartered there?
The founders of BATS are from the Kansas City area and it is where the idea for BATS was born. BATS is proud of its Midwest roots and the Kansas City area boasts a smart, technically adept workforce with an entrepreneurial nature. BATS also has an office on Wall Street in New York as well in the City in London.