NYX Nyse Euronext

BATS Global Markets intends to challenge the New York Stock Exchange and Nasdaq Stock Market for share-listings with a low-priced alternative that will be free for companies that defect from other platforms.

The third-largest U.S. stock market operator filed plans with regulators Monday for a planned fourth-quarter launch of its listings platform, governed by standards in-line with those already in place at Nasdaq OMX Group Inc. (NDAQ).

"[T]he Exchange believes that the proposal will provide companies with another option for raising capital in the public markets," BATS officials wrote in the regulatory filing.

BATS' initial slate of listings fees, "while not necessarily cheaper for all issuers at all other markets, is roughly equivalent or less than issuers would pay at other exchanges," according to the documents.

The Kansas City-based company, which has gained ground on rival exchanges with low trading fees and high-powered technology, looks to enter the highly brand-powered business of primary listings as U.S. regulators have directed fresh scrutiny toward competition in the sector.

Nasdaq OMX Group on Monday dropped its hostile takeover proposal for NYSE Euronext (NYX) after the Department of Justice told the exchanges that it would view such a combination as a monopoly that could drive costs higher for publicly traded companies. NYSE since February has been pursuing an agreed merger deal with Deutsche Boerse AG (DB1.XE, DBOEF).

Brian King, who has managed client relationships for BATS for four years, will serve as director of BATS Listings. The venture already has secured one company--BATS itself, which last week announced plans for a $100 million initial public offering.

BATS on Monday proposed a flat fee for listing shares on two "tiers" offered by its platform, unrelated to the number of shares oustanding or other measures affecting charges at other markets.

Companies would pay $100,000 to list shares on BATS' "Tier I" market, alongside an annual fee of $35,000. Listings on the junior "Tier II" BATS market would cost $50,000 initially and $20,000 to maintain each year.

On the Nasdaq Global Market, issuers pay initial listing fees ranging between $125,000 and $225,000, alongside annual costs between $35,000 and $99,500. On the New York Stock Exchange, annual fees run as high as $500,000 for the biggest companies.

BATS said it would wave the "entry fee" for companies already listed on the NYSE or Nasdaq, if they transfer to BATS and abandon their current home, according to the filing.

No additional charges would be applied to the issuance of additional shares, name changes or other corporate actions, the company said. BATS also aims to offer listing services for exchange-traded funds, warrants and preferred stock, among other securities offered by public companies.

As regulators look over BATS' proposed listings rules, the company is doing advance work on an opening and closing process for BATS-listed shares, and coordinating with market data vendors.

All securities listing on BATS will be listed on its original "BZX" exchange, which BATS last fall complemented with a second trading venue called "BYX."

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

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