Better Alternative Trading System (BATS)
What Is Bats Global Markets?
Bats Global Markets was a U.S.- based exchange that listed several unique types of investments, including equities, options, and foreign exchange. It was established in 2005 and was acquired by Cboe Options Exchange (Cboe) in 2017. Prior to being acquired, Bats Global Market was one of the biggest U.S. exchanges and notable for its services to [broker-dealers](/intermediary seller) as well as retail and institutional investors.
Grasping BATS
Bats Global Markets was recently known as Better Alternative Trading System (BATS) and was initially branded as a alternative trading platform, marketing itself to investors as a company that was more inventive than laid out exchanges. At the point when it entered the European market in 2008, the company was rebranded as Bats Global Markets.
As an exchange, Bats developed into the principal contender to the New York Stock Exchange (NYSE) and Nasdaq, the two of which dealt with a greater amount of equities when positioned by market capitalization. In 2016, Bats had turned into the second-biggest U.S. equity exchange by market share and was the biggest exchange-traded fund (ETF) exchange.
In the United States, its BZX Exchange turned into a registered exchange in 2008, and its BYX Exchange was sent off in 2010. Somewhere in the range of 2011 and 2015, Bats merged with and acquired several exchanges. In 2011, it acquired Chi-X Europe, making it the biggest stock exchange in Europe. In 2014, a merger with Direct Edge added the EDGA and EDGX exchanges. In 2015, Bats acquired Hotspot, an electronic communication network (ECN), permitting institutional investors spot trading, swap execution, and forward trading services.
BATS versus Cboe
BATS encountered several eminent technical obstacles throughout the long term. The company looked to open up to the world in a initial public offering in 2012, with shares being offered on its own exchange. This work was rejected when a serious technical issue brought about its IPO price tumbling from $16 per share to $0.04 a share.
In 2013, the company indicated that a technical blunder prompted countless trades executing at prices lower than the best bid and offer, which likewise impacted investors who were selling shares short. The mistake impacted trades returning four years.
Cboe, the owner of the Cboe Options Exchange and Cboe Futures Exchange (CFE), made an offer to gain Bats Global Markets in 2017. The acquisition permitted Cboe to venture into Europe and increase its offerings to incorporate foreign exchange and ETFs. Cboe currently works four U.S. options markets, Cboe Futures Exchange, an European equities market, four U.S. equities markets, and a foreign exchange market. Three of the exchanges that Cboe worked prior to procuring Bats migrated to the Bats trading platform.
Features
- Better Alternative Trading Systems was rebranded to Bats Global Markets in 2008 when the exchange made an introduction to European markets.
- CBOE acquired Bats in 2017 and migrated three of its exchanges to the Bats Global Markets platform.
- Prior to the acquisition, Bats had become quite possibly of the biggest exchange in the world with postings in stocks, options, ETFs, and foreign exchange.
