The Competition Commission (CC) has today published an issues statement as part of its investigation into the anticipated acquisition by BATS Trading Limited of Chi-X Europe Limited.
Both companies operate Multilateral Trading Facilities (MTFs) which enable market participants (investment banks, brokers and dealers) to trade pan-European equities through a single platform as an alternative to trading on national exchanges such as the London Stock Exchange (LSE). The CC has been asked to decide whether the acquisition may be expected to result in a substantial lessening of competition (SLC) in any market or markets for goods or services in the UK.
The issues statement follows the first stages of gathering information, views and evidence and identifies clearly for all interested parties the specific questions and areas the inquiry is examining. This will form the basis for hearings with BATS, Chi-X and other interested parties.
The full issues statement is available on the CC website at: www.competitioncommission.org.uk/inquiries/ref2011/bats_chi_trading/index.htm.
If the inquiry group considers that the merger may be expected to result in an SLC, it will consider whether and, if so, what remedies might be appropriate, taking into account any relevant customer benefits that might arise from the acquisition. The inquiry group will issue a remedies statement, should this be required, at about the time it publishes its provisional findings.
The issues statement identifies the key questions being addressed in the investigation. It does not imply that the inquiry group has yet identified any competition concerns.
The CC would like to hear from all interested parties, in writing, by 26 July 2011. To submit evidence, please email BATSGlobalChix@cc.gsi.gov.uk or write to:
Inquiry Manager
BATS/Chi-X merger inquiry
Competition Commission
Victoria House
Southampton Row
LONDON
WC1B 4AD
