Bats Said in Talks With Direct Edge Amid Four-Year Volume Slide

Bats Global Markets Inc. and Direct Edge Holdings LLC, formed to provide Wall Street firms with alternatives for trading, have seen their own options shrink.

The third- and fourth-largest equity exchange owners are in merger discussions, according to two people with direct knowledge of the talks. The discussions are progressing and may come to nothing, said the people, who asked not to be identified because the negotiations are private.