When you add High Frequency Trading exchange 263 and High Frequency Trading exchange 264 (read all about DirectEdge over the years here), you get a whole lot of happy algos. It also means that MtGox is on its way to becoming the world's most stable exchange. We now expect the market to crash in celebration. We joke, of course, but if anyone trips over the BATS extension cord that sends AAPL under $500 and the NYSE Arca and NASDAQ shutting down again, we take no responsibility. Finally, in continuing the spirit of full transparency and openness of everything HFT-related, the terms of the transaction will not be disclosed.
Full press release which does not disclose terms:
BATS GLOBAL MARKETS AND DIRECT EDGE AGREE TO MERGE
KANSAS CITY, Mo., and JERSEY CITY, N.J. – August 26, 2013 – BATS Global Markets, Inc. (BATS) and Direct Edge, LLC (Direct Edge) today announced a definitive merger agreement, which will bring together two customer-focused securities exchange operators under the BATS Global Markets enterprise to drive further innovation and better serve investors. Financial terms will not be disclosed for the transaction, which is expected to close in the first half of 2014, subject to regulatory approvals. Current BATS CEO Joe Ratterman will remain in the same role and current Direct Edge CEO William O’Brien will be President. Bryan Harkins of Direct Edge will join the combined company as an integral member of the senior executive team.
Mr. Ratterman said “This agreement is an important milestone for the U.S. equities market and other markets around the globe as it will combine two organizations that have been innovative in creating a more competitive marketplace to benefit all investors.”
Mr. O’Brien said “Direct Edge and BATS were both founded on a commitment to create an optimal trading experience for a diverse member base, from retail investors to broker-dealers to institutions. Together, the best of both organizations will work to further improve how the world trades, consumes market data, and accesses capital markets.”
The combined company will use the proprietary BATS technology and will be headquartered in the Kansas City, Mo., area with additional offices in Jersey City, N.J., New York and London. All four U.S. equity exchanges operated by BATS and Direct Edge will remain in operation under the agreement – the BATS BZX and BYX Exchanges and the Direct Edge EDGX and EDGA Exchanges.
In addition to the aforementioned markets, BATS operates a U.S. equity options market and BATS Chi-X Europe, the largest stock exchange in Europe. Direct Edge continues working towards opening an equity market in Brazil. BATS was advised by Broadhaven Capital Partners on the transaction and Direct Edge was advised by BofA Merrill Lynch and Evercore Partners.
And in binary: