Bats Chi-X Europe will become a recognized investment exchange later this month, enabling it to compete with stock exchanges across Europe for primary listings.
The multilateral-trading facility’s new status will allow it to host listings for the first time, Bats Chi-X Europe said in a statement. The regulatory approval also means that investors with charters that oblige them to trade on registered stock exchanges can use the London-based company to carry out their transactions.
The U.K.’s Financial Conduct Authority will award Bats Chi-X Europe recognized investment exchange status from May 20. Under European Union regulations called the Markets in Financial Instruments Directive, stock markets and trading venues that obtain regulatory approval in one country can offer their services to investors in the other 26 member states.
“With FCA approval of our RIE application, we will be even better positioned to support the vision of a border-less European capital market and to compete in other areas, such as primary listings,” said Mark Hemsley, chief executive officer of Bats Chi-X Europe. “Our RIE status also enables a broader range of retail investors and buy-side firms to connect to our market and enjoy the benefit of competition that Mifid allowed, including trading venue choice, lower fees and and improved service and technology.”
Bats Chi-X Europe will become the third registered stock exchange in the U.K. after London Stock Exchange Group Plc and ICAP Plc’s Securities & Derivatives Exchange.