BATS Global Markets (BATS), a paramount operator of exchanges and services for global financial markets, has just received approval from the US’ Securities and Exchange Commission (SEC) to initiate its second options market, tapped EDGX Options, according to a BATS statement.
BATS’ EDGX Options is slated to open on November 2, 2015, which will be based in large part on a customer priority/pro rata allocation model – the methodology is designed to complement its BZX Options market.
EDGX Options will be based out of the Equinix NY5 data center, a regular destination for other BATS US entities, such as its equities, option, and foreign exchange (FX) ECN Hotspot.
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Ahead of the launch in November, BATS will also be offering a number of testing opportunities. Additionally, the launch of EDGX Options will help enable BATS to better compete for a fresh segment of order flow that doesn’t trade on the price-time markets.
According to Bryan Harkins, Executive Vice President and Head of US Markets at BATS in a recent statement on the regulatory approval, “We are pleased to receive approval from the SEC to launch EDGX Options and we are looking forward to making our mark in a new segment of the options market.”
“Two-thirds of U.S. options market volume is executed on exchanges with a pro rata model and we believe we can help make markets better for participants in this segment of the market through our innovative technology, operating efficiency, market-leading pricing, and first-class customer service,” added Mr. Harkins.
Last month, BATS made headlines when it reported its data and volumes for the month ending June 2015, which underscored a strong performance across its European equities business.