NYX Nyse Euronext

Kansas-based exchange operator BATS Global Markets, which owns BATS Europe, Friday confirmed that it agreed to buy pan-European equities trading platform Chi-X Europe, in a deal that combines the least-staffed yet most-formidable competitors to Europe's incumbent stock exchanges.

The deal, in which financial details weren't disclosed, still needs regulatory approval and comes amid a frenzy of merger-and-acquisition activity in the exchange industry.

Dow Jones Newswires reported Thursday that, according to people familiar with the deal, the acquisition was worth $300 million, but could involve additional payments of $30 million in both 2012 and 2013 if Chi-X Europe meets performance targets. BATS is valued at an estimated $1.2 billion.

Last week, the London Stock Exchange Group PLC (LSE.LN) teamed up with Canada's TMX Group Inc (X.T), and Deutsche Boerse AG (DB1.XE) announced its tie-up with NYSE Euronext (NYX) on Tuesday.

"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," said Joe Ratterman, president and chief executive of BATS Global Markets.

The new group will be called BATS Chi-X Europe, making use of both companies' brands.

Chi-X Europe CEO Alasdair Haynes said: "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."

BATS Europe CEO Mark Hemsley said: "BATS Europe and Chi-X Europe have worked together closely on key market structure issues such as tick sizes, symbology, market data and clearing, aiming to reduce longstanding barriers in Europe's trading environment. We are enthusiastic about the possibilities that lie ahead for the combined operation."

BATS Europe has only 30 staff and Chi-X Europe has 51, much smaller compared with around 3,500 at Deutsche Boerse and more than 1,100 at the LSE.

Data from Thomson Reuters show that the combined market share of equity trading volume in the European Union for the LSE and its unit Borsa Italiana fell to 39% in December 2010 from more than 45% the year before.

Meanwhile, the combined share of Chi-X and BATS has increased to 19.2% from 16.6%.

Separate data from the Federation of European Securities Exchanges show that Chi-X Europe had EUR1.535 trillion worth of trades in its main electronic order-book trading last year, up more than 80% from 2009.

This makes it second only to the LSE, which had EUR2.084 trillion worth of trades.

-By Vladimir Guevarra, Dow Jones Newswires. Tel. +44 (0) 2078429486, vladimir.guevarra@dowjones.com

(William Launder in Frankfurt and Jacob Bunge in Chicago contributed to this article.)

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni NYSE Group (NYSE:NYX)
Storico
Da Lug 2023 a Lug 2024