Bats Exchange has unveiled the latest stage of its assault on Nyse Euronext and Nasdaq OMX, outlining plans to launch a US listings market by next summer.
In less than four years the upstart electronic venue, backed by banks and trading firms, has captured a 10% market share in US equities, thanks in part to aggressive pricing.
Now it is aiming to compete in the initial public offering market dominated by Nyse Euronext and Nasdaq OMX. Listings businesses is estimated to make up between 15% and 25% of these market operators' revenues and analysts predict a rise in IPOs following a quiet couple of years.
Joe Ratterman, chief executive, Bats, says: "Based on feedback from our members, investors and the investment community, we believe there is an incredible opportunity to compete in the listings business and satisfy unmet needs of current and future public companies and exchange-traded funds in the US."
After securing exchange status last August, Bats has moved to widen its business, filing rules with the SEC to launch US equity options trading and a second US equities exchange, both slated for launch in early 2010.