Report: BATS and Direct Edge in Talks Over Possible Merger

by Christopher Freeburn | August 26, 2013 11:10 am

NYSE traders trading floor watch 630 flickr 300x200 Report: BATS and Direct Edge in Talks Over Possible Merger[1]Sources tell FOX Business that the operators of the third and fourth largest U.S. stock exchanges are discussing a possible deal that could reshape the equities-trading landscape[2].

A potential combination of BATS Global Markets and Direct Edge could create the second largest U.S. stock exchange. Only the New York Stock Exchange, run by NYSE Euronext (NYX[3]) would be larger. It would push the Nasdaq OMX Group‘s (NDAQ[4]) Nasdaq exchange to third place.

Any deal between BATS and Direct Edge would require the approval of the Securities and Exchange Commission (SEC). Prior discussions over a possible acquisition of Direct Edge by Canada’s TMX group collapsed last year.

The SECĀ approved the BATS BZX Exchange in late 2011 as a rival to the NYSE and Nasdaq exchanges[5].

Last week, the Nasdaq had to halt trading for hours[6] due to a technical glitch.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/07/NYSE_traders_trading_floor_watch_630_flickr.jpg
  2. possible deal that could reshape the equities-trading landscape: http://www.foxbusiness.com/industries/2013/08/23/sources-bats-direct-edge-mull-merger/
  3. NYX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NYX
  4. NDAQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=NDAQ
  5. as a rival to the NYSE and Nasdaq exchanges: http://investorplace.com/2012/02/bats-bzx-exchange-nyse-nasdaq/
  6. had to halt trading for hours: http://investorplace.com/2013/08/market-recap-nasdaq-ndaq-hpq-shld-gme-aro/

Source URL: http://investorplace.com/2013/08/report-bats-and-direct-edge-in-talks-over-possible-merger/
Short URL: http://invstplc.com/1nxlfEZ