BATS and Direct Edge to Merge

August 26, 2013 09:46 by Clayton Reeves in M&A  //  Tags: , , , ,   //   Comments (0)

Local Kansas City stock exchange BATS Global Markets, Inc. (BATS) and Direct Edge Holdings LLC (Direct Edge) have announced a definitive merger agreement today that will bring the two exchange operators together in an effort to displace NYSE and Nasdaq as the market leaders.  BATS came on the scene relatively recently (in terms of stock exchanges), leveraging advanced technologies and speed of operation to steal market share from the larger, slower market leaders.

Given the recent technology related blips on major markets, the merger couldn't come at a better time for companies looking to improve reliability and integrity in electronic trading.  Current BATS CEO Joe Ratterman, who will remain in the same role for the combined entity, said, “This agreement is an important milestone for the U.S. equities market and other markets around the globe as it will combine two organizations that have been innovative in creating a more competitive marketplace to benefit all investors.”

Direct Edge CEO William O’Brien, who will be President of the new company, said, “Direct Edge and BATS were both founded on a commitment to create an optimal trading experience for a diverse member base, from retail investors to broker-dealers to institutions. Together, the best of both organizations will work to further improve how the world trades, consumes market data, and accesses capital markets.”

The combined company will remain headquartered in Kansas City, with additional offices in New Jersey, New York and London.

Click here to read the press release.

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