Joe Ratterman, Chief Executive Officer for Bats Global Markets, said that the merger of Bats with Direct Edge Holdings Inc. would help the economy compete with bigger exchange operators.
Kansas-based Bats was established in 2005. The company said yesterday that it had agreed to merge with New Jersey-based Direct Edge. The combination of both companies would create the second biggest US equity exchange. Ratterman said that the company's drive towards changing for new data is a new business for Bats. He also added that the company would improve and might get double stock transactions once the merger with Direct Edge had been completed.
Exchange companies had sought new sales sources after trading shrunk due to decreased volume and competition. Last July, Nasdaq OMX Group Inc. purchased electronic bond platform eSpeed. Meanwhile, NYSE Euronext would be taken over by futures exchange operator Intercontinental Exchange Inc.
In a phone interview yesterday, Ratterman said that Bats and Direct Edge had been directed towards equities and could receive more money from data.
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