BATS Global Markets Prospective Buyer of KCG Hotspot for $400 Million

According to a report by Reuters, Kansas City headquartered Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term operator BATS Global Markets is in negotiations to acquire KCG Hotspot from KCG Holdings Inc. The deal is said to be valued at $400 million, according to anonymous sources.

KCG has been on the lookout to sell its foreign exchange Electronic Communication Network (ECN) KCG Hotspot since October last year, when it announced that it was exploring strategic options for the foreign exchange unit.

At the time, KCG's earnings report outlined, “KCG has not made a decision to enter into any transaction at this time, and there can be no assurance that KCG will enter into such a transaction in the future.”

KCG Holdings own about 16.5% of BATS, and the deal is said to be in advanced stages of negotiations.

While the Reuters report confirms talk about a prospective deal, there has been no verification about whether or not BATS will be acquiring one of the biggest ECNs in the foreign exchange market.

On January 15th, when the Swiss 'Black Swan Black Swan A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in Read this Term' hit the market, KCG Hotspot reported its highest volume turnover ever, with 61.7 billion changing hands on the ECN platform.

Shares of KCG Holdings (NYSE:KCG) traded higher by 4.24% on Saturday.