Pan-European trading platform Bats Chi-X Europe is in talks with the UK's Financial Services Authority about becoming a registered exchange, according to press reports.
The MTF has been in talks with the FSA since May and has submitted a draft proposal for a Regulated Investment Exchange license, says the Financial Times, citing sources.
The merger of Bats Europe and Chi-X Europe late last year created an MTF with a market share of around 40% in FTSE 100 stocks but this has since fallen off by around ten per cent.
Securing a license would enable the platform to compete for the business of retail and institutional clients that have to use an exchange, as well as open up a move into listings.
Parent company Bats first revealed the plan in a filing to US regulators ahead of its planned IPO earlier this year. The listing, however, was ditched over a humiliating technical breakdown on the opening day of trading.
Bats Chi-X Europe eyes UK exchange licence - FT