Bats Sees December Volume Fall Offset by Record 2016 US Options Market Share

Although volumes for December fell, Bats has produced solid figures for the year maintaining strength across all its markets.

Bats Global Markets today disclosed its latest volumes and market share for the month ending December 2016, together with overall highlights for the year reflecting continued strength across all its markets, led by record full-year US Options market share and US ETF listings growth.

December Metrics

For the month of December, Bats’ business registered a total market share of 19.6 percent for December showing a slight fall compared with 20.4 percent in November 2016.

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In terms of ETFs, Bats remained the number one US market operator for ETF trading throughout the year with 85 ETF listings to its US market, an increase of 145% over 2015. During the year, the company captured 30% of all new ETF listings, and added 27 funds from eight providers to its US market.

The exchange released its trading figures in December 2016, with its average daily matched volume coming in at 1.33 billion shares, compared with 1.62 billion shares in November 2016, down -18 percent MoM, as the markets returned to business as usual following the US election.

Looking at its other figures, Bats also saw an average daily matched volume of 1,660,092 contracts across its US equities options during December 2016 versus 2,098,949 in November, falling by -21 percent MoM.

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European Overview

Looking over to its European business, Bats Europe business fell to a 20.2 percent market share in December 2016, down from 22.1 percent in November 2016 – the stock exchange is still Europe’s largest, with an average daily notional value reported registering $9.2 billion (€8.7 billion) vs $11.4 billion (€10.6 billion) in November, or -18 percent MoM.

The fall also extended to Bats BTXR, which executed a total of $358.7 billion (€338.2 billion) of notional volume in December 2016, compared to $420.3 billion (€391.1 billion) in November 2016, or -13.5 percent MoM.

2016 Highlights

Other highlights for the year include Bats completion of its IPO on Bats Exchange of 15,295,000 shares of common stock for $19.00 per share.

Bats also entered into a transaction agreement in September with CBOE Holdings under which CBOE will acquire Bats to create one of the largest market operators around the globe. The acquisition valued the equity market capitalization of Bats at approximately $3.2 billion as of the date of the announcement and remains subject to customary closing conditions.

In Global FX, Hotspot grew its market share to 12.5 percent over 2016 from 11.5 percent in 2015 and the platform reported a record on 9th November, with more than $64 billion traded.

Finally, Bats announced plans to launch the Bats Auction Mechanism (BAM) new functionality which provides price improvement opportunities for orders sent to EDGX Options. The new service officially launched on January 4, 2017.

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