BATS Global Markets Receives SEC Approval For Retail Price Improvement Program
Retail Price Improvement (RPI) Program Designed To Maximize Price Improvement
Opportunities for Retail Investors
KANSAS CITY, Mo., Nov. 29, 2012
KANSAS CITY, Mo., Nov. 29, 2012 /PRNewswire/ --BATS Global Markets, a leading
operator of securities markets in the U.S. and Europe, received approval from
the U.S. Securities and Exchange Commission (SEC) for its Retail Price
Improvement (RPI) program, designed to provide significant price improvement
for retail investors.
BATS BYX Exchange will launch the program as a one-year pilot on December 17,
"Our RPI program is designed to provide better executions for individual
investors by offering material price improvement for retail orders," said Joe
Ratterman, president and chief executive of BATS Global Markets. "By enhancing
price competition for retail orders, our goal is to provide retail customers
with better execution prices while improving the overall quality of the BYX
Exchange for all market participants."
BATS has a history of providing significant price improvement to all types of
customers. In the third quarter of 2012 alone, firms trading on the BATS U.S.
stock exchanges realized more than $19 million in unexpected price improvement
from executions against midpoint orders priced better than the National Best
Bid or Offer (NBBO).
The planned BATS RPI program is designed to provide material price improvement
for retail orders sent to the BYX Exchange by executing incoming retail orders
against retail price improving orders and all other liquidity that improves
upon the NBBO. The program uses a strict price/time priority model and
executes retail orders at multiple price levels to achieve maximum price
improvement for retail orders.
The RPI program creates a new class of market participants called Retail
Member Organizations (RMOs) that are eligible to submit retail orders. Any BYX
Exchange Member may certify to submit RPI orders that offer price improvement
in $.001 increments to retail orders submitted by RMOs.
To qualify as an RMO, members must conduct a retail business or handle retail
orders on behalf of another broker-dealer. At launch, RPI orders will be
accepted for a select set of securities defined in the RPI fee schedule, and
gradually expanded to all securities traded on BYX over the course of the
one-year pilot. The BATS RPI program rule filing and guidelines for applying
to become an RMO on the BYX Exchange are available at www.batstrading.com and
BYX RPI rule filing.
Retail orders and RPI orders may only be entered by BYX Exchange members that
have completed the appropriate certification with the BATS Trade Desk. Contact
the BATS Trade Desk (email@example.com) for more information regarding retail
order and/or RPI order certification.
About BATS Global Markets, Inc.
BATS Global Markets, Inc. (BATS) is a leading operator of securities markets
in the U.S. and Europe. BATS develops and operates electronic markets for the
trading of listed cash equity securities in the U.S. and Europe and listed
equity options in the U.S. BATS operates two stock exchanges in the U.S., the
BATS BZX Exchange and BYX Exchange; BATS Options, a U.S. equity options
market; and BATS Chi-X Europe, which operates a FSA-authorized multilateral
trading facility. BATS' innovative and proprietary technology was developed by
a dedicated core team of market and technology professionals, catering to the
needs of the broker-dealer and trading community. The company is headquartered
in the Kansas City, Mo. area, with additional offices in New York and London.
For more information, visit www.bats.com.
SOURCE BATS Global Markets
Contact: Media (U.S.), firstname.lastname@example.org, Stacie Fleming, +1-913-815-7193, or
Suzanne O'Halloran, +1-212-378-8526
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