Bats Pushes Derivatives, New Markets as It Reviews IPO

Bats Global Markets Inc. will offer derivatives trading in Europe and push growth in markets such as Brazil as the third-largest U.S. equity-exchange operator seeks to re-establish credibility after a technical glitch forced it to cancel its initial public offering.

Bats, which also runs the biggest pan-European market after its purchase of Chi-X Europe, could trade derivatives in London as soon as the fourth quarter, Mark Hemsley, chief executive officer of Bats Chi-X Europe, said in an interview. The Lenexa, Kansas-based company is pressing ahead with its plans and will decide on a European clearinghouse to process the transactions in the third quarter. Equity-based contracts will probably be the first to be introduced, he said.