NYX Nyse Euronext

BATS Exchange said Thursday that it would launch a new U.S. listings market by the summer of 2010, aiming to compete with much larger rivals amid a slowdown in new public floatations.

"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 U.S.," said Joe Ratterman, chief executive of BATS Global Markets, parent of BATS Exchange.

BATS, an electronic stock-trading platform launched in early 2006, has taken about 10% of the U.S. cash equities market from larger rivals NYSE Euronext (NYX) and Nasdaq OMX Group Inc. (NDAQ) with a focus on fast execution speeds and competitive pricing.

The move into listings follows other efforts to diversify BATS's business, after the exchange operator introduced an index and is prepping a U.S. options platform.

BATS, based in Kansas City, Mo., also is developing a second U.S. cash equities platform that it plans to introduce next year, pending regulatory approval.

The company, backed by a consortium of banks and trading firms, enters the U.S. listings fray as exchange executives forecast a rise in new public offerings next year, after the financial crisis put many companies' IPO plans on hold.

Initial public offerings took a sharp drop in 2008, with the total value of deals globally coming in at less than one-third the 2007 level as the financial crisis deepened.

While the market has stabilized this year, few deals were done in the first half, and total capital raised through initial public offerings isn't likely to top 2008's $107 billion.

For the year through late November, NYSE Euronext saw a total of 45 IPOs, raising an estimated $20.9 billion, according to figures from research firm Dealogic. Nasdaq OMX had 29 deals, with an estimated value of $8.1 billion.

BATS also is entering an increasingly competitive sector, with more platforms vying for listings of all sizes.

Beyond the major listing venues operated by NYSE Euronext and Nasdaq OMX, smaller companies seeking public capital are being courted by TSX Venture Exchange, a unit of Canadian exchange operator TMX Group (TMXGF, X.T), as well as OTCQX, operated by Pink OTC Markets, which also runs the Pink Sheets.

Nasdaq OMX plans to introduce its own junior listing venue, called BX, which it is aiming at smaller companies that don't currently qualify for listing on the Nasdaq Stock Market or the New York Stock Exchange.

-By Jacob Bunge, Dow Jones Newswires; (312) 750-4117; jacob.bunge@dowjones.com

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