Bats Global Markets says it will launch its second US equities exchange in the next couple of months after receiving regulatory approval from the SEC.
The Kansas City-based firm's Bats Exchange has captured more than 11% market share in US equities in four years, in part through aggressive pricing.
It now plans to further challenge the established players, Nyse Euronext and Nasdaq OMX and Direct Edge, with Bats Y-Exchange, or BYX. All three rivals already operate two venues.
The firm says the new platform will use the same technology, location and connectivity as its original exchange but will be more flexible in pricing.
Joe Ratterman, chief executive, Bats Exchange, says: "BYX will utilise the same world-class technology, customer service model and group of associates that has made BZX a success while offering more innovative solutions to members such as greater flexibility in pricing."