Direct Edge, BATS Global Markets Merger: A Note From Joe Ratterman And Bill O'Brien

Dear BATS and Direct Edge customers and members of the trading community,

We are pleased to announce the successful completion of the deal to merge BATS Global Markets and Direct Edge. This moment is a noteworthy milestone for the U.S. equities market as it joins together two complementary exchange operators rooted in customer-focused principles with a history of innovation that strive to make markets better as your partner in trading.

The opportunities ahead of us are vast and exciting. As we move forward, expect to see an enhanced exchange operator that is even more in tune with customer needs.  We intend to build upon our customer-focused principles by leveraging the best-in-class offerings from both organizations to create a leading exchange operator that brings enhanced value to traders, investors and issuers. 

BATS Global Markets established a reputation for world class technology and Direct Edge for creating innovative products and services, with both heavily focused on customer service.  As a result, the companies have cultivated distinct and complementary ecosystems, which will make this combination even more rewarding for our customers. 

We are now in a very strong position to seek opportunities in new asset classes and geographies around the globe, while continuing to enhance our competitive posture in the U.S. equities market.  On any given day, our combined market share places us as the largest U.S. exchange operator, and BATS Chi-X Europe continues to be the largest pan-European equities exchange by market share and value traded.

With the integration of the two companies, we’re focused on continuing to improve a market model that provides choice and technology compatibility, while maintaining low customer costs. We will continue to operate four equities exchanges – BZX, BYX, EDGA, EDGX – as each exchange has its own trading ecosystem that meets the needs of various customers. All exchanges eventually will operate on the BATS technology providing a common platform that will help reduce costs for customers. Our plan is to complete this technology migration in the next 12 months.

To that point, we’ll be sharing additional information on the planned integration in the days ahead, but in the meantime we’ve established an integration website – bats.com/edgeintegration – that will be an on-demand resource for all things customers need to know about the integration.

While we’re busy at work behind the scenes integrating the two companies, there will be no significant technology or operational changes. All members should continue to interact and communicate with each exchange as they normally would. Current BATS and Direct Edge contacts for Trade Desk and Membership Services at the respective organizations remain the same at this time. We will provide ample notice to all members regarding any changes that would impact their business or how they interact with each exchange.

A smooth integration of people, product and process is our top priority to ensure that everything is seamless to our customers. The efficient and effective transition of the two Direct Edge exchanges to the BATS technology platform and the combining of our staffs will be achieved with the utmost care and attention. 

Your thoughts and feedback are critical to ensuring we are implementing the right solutions to meet your needs, so expect to continue to hear from us frequently.

Thank you for your continued support.

Regards,

Joe Ratterman
CEO, BATS Global Markets

William O’Brien
President, BATS Global Markets