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Better Alternative Trading System (BATS)

Contents

Exploring Bats Global Markets: A Comprehensive Guide

Unravel the story of Bats Global Markets, once a formidable player in the financial exchange arena, renowned for its innovative approach and diverse listings. From its inception as Better Alternative Trading System (BATS) to its acquisition by CBOE Holdings, delve into the evolution, challenges, and impact of Bats Global Markets on the financial landscape.

The Genesis of Bats Global Markets

An Alternative Trading Platform:

Originally known as Better Alternative Trading System (BATS), the exchange positioned itself as a dynamic alternative to traditional platforms, attracting investors with promises of innovation and efficiency. Its foray into the European market in 2008 marked a pivotal moment, leading to its rebranding as Bats Global Markets.

Ascension to Prominence:

Bats swiftly emerged as a formidable contender against established giants like the New York Stock Exchange (NYSE) and Nasdaq, expanding its offerings to encompass equities, options, ETFs, and foreign exchange. By 2016, it had secured a significant market share, solidifying its position as a leading exchange.

Milestones and Mergers

Strategic Expansions:

Bats embarked on a series of strategic mergers and acquisitions, bolstering its presence and capabilities. Notable milestones include the acquisition of Chi-X Europe in 2011, followed by the merger with Direct Edge in 2014, and the acquisition of Hotspot in 2015, enhancing its suite of services and global reach.

Technical Challenges:

Despite its ascent, Bats encountered formidable technical hurdles, including a failed initial public offering in 2012 due to a catastrophic pricing error. Subsequent technical glitches in 2013 tarnished its reputation, underscoring the complexities of operating in the financial markets.

Acquisition by CBOE Holdings

The CBOE Alliance:

In 2017, CBOE Holdings seized the opportunity to acquire Bats Global Markets, heralding a new chapter in both entities' histories. The acquisition empowered CBOE with an expanded footprint in Europe and diversified offerings, ushering in a new era of growth and innovation.