UPDATE: BATS Outlines Low-Priced Listings Venture
17 Maggio 2011 - 12:50AM
Dow Jones News
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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