BATS Global Markets has acquired Chi-X Europe, creating the largest pan-European trading center in terms of market share and notional value traded, according to a statement by the exchanges. The new entity will be called BATS Chi-X Europe.
Chi-X has grown to become the second-largest exchange in Europe by January this year. BATS operates the third largest equity exchange in the US and second largest alternative trading system in Europe, according to Bloomberg.
This transaction joins two successful and innovative market centers and will be a tremendous boost for competition in pan-European trading in the face of increasing consolidation among incumbent exchanges, says Joe Ratterman, president and chief executive of BATS Global Markets. BATS was drawn to Chi-X Europe because of our many similarities, particularly in the areas of culture, technology, market structure and innovation. We look forward to the integration process and thank our customers and investors for their continued support.
Alasdair Haynes, chief executive of Chi-X Europe, adds, I am very proud of what Chi-X Europe has achieved since its launch in 2007 and am confident that the combined entity will ensure that competition among exchanges will be strengthened. Both Chi-X Europe and BATS believe strongly in the pan-Europe model and we will continue to work tirelessly to reduce trading costs for our users.
Financial terms were not disclosed. The acquisition, expected to close in the second quarter of 2011, awaits regulatory approvals.