After BATS Global Markets appointed a new CEO last month, the company’s new leader shared bits and pieces from his vision about the company. In a letter to clients and members of the trading community, Chris Concannon shared that the company was committed to becoming number one in every business it was participating in.
With the latest business venture of BATS Global Markets being foreign exchange, market players are already pondering what the company has in mind to impact the industry.
Last month, BATS Global Markets successfully completed the acquisition of Hotspot FX from KCG Holdings for about $365 million. Speaking to Finance Magnates, Chris Concannon, who at the time was still President of BATS Global Markets, shared that the acquisition was a chance for the firm to step into the world’s largest asset class by volume.
BATS obtained an important operational hub through the acquisition of Hotspot FX
The letter from the company’s new CEO sheds more light onto the intentions of BATS when it comes to foreign exchange and some other aspects of the company’s business.
The company has also obtained an important operational hub through the acquisition of Hotspot FX from KCG. Access to the all-important Southeast Asian market has been facilitated by a physical presence in Singapore after the company acquired the foreign exchange business unit of KCG Holdings.
Aside from its headquarters in Kansas City, BATS Global Markets has presence in New York, London and Chicago.
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What’s Next for Hotspot under BATS
Speaking about the acquisition of Hotspot, Mr. Concannon said, “The Hotspot acquisition is a unique one for BATS and will be every bit as transformative as the Chi-X Europe and Direct Edge transactions have been.”
“Hotspot has shaken up the foreign exchange industry by going after slower-moving incumbents, something that BATS has done successfully in both the U.S. and European equities markets, as well as U.S. options. And Hotspot is in great position to continue to grow its market share,” the company’s CEO concluded.
We will leverage the BATS infrastructure and personnel to grow our FX business
Uncovering some more details about the specific steps which BATS Global Markets is committed to take, the letter highlighted the company’s plans to put a Hotspot matching engine in London. The new one will be located close to the existing BATS infrastructure. In addition, the company intends to move the U.S.-based Hotspot matching engine to Equinix NY5, allowing existing customers to easily connect.
For BATS Global Markets, the steps mentioned above are a logical continuation of the acquisition of Hotspot FX. In a world which is increasingly interested in accessing and trading several asset classes, the ability to provide this access is key to the performance of the financial industry.
“Naturally, we will leverage the BATS infrastructure and personnel we’ve used to build Europe’s largest stock market as we grow our FX business,” Mr. Concannon concluded.
After taking a leadership position in several markets including European equities, BATS Global Markets has serious intentions about FX.