Bats to Expand European Trade Reporting Services

Bats Global Markets Inc. is expanding its European trade reporting services in a move to enhance the quality of the data sold to customers.

Bats Chi-X Europe, the largest pan-European stock exchange, will offer reporting of off-exchange transactions through its new BXTR service, Mark Hemsley, chief executive officer of Bats Europe, said in an interview. BXTR will provide trade monitoring, a service for alternative platforms to report data, and allow negotiated transactions to be brought onto the exchange. The system also helps systematic internalizers, or banks who match customer orders internally, meet transparency requirements.

“We are effectively taking over the counter and adding it to the data feed,” Hemsley said. “By offering the full range of facilities, we can improve the range of market data.”

Bats is building out its European business as it seeks to gains market share in the region. The exchange last week said it will enter the European listings business and handled about 21 percent of all stock trading in Europe during the past five days, more than any other except London Stock Exchange Group Plc, according to data compiled by Bats.

The new reporting services will start in the next month, Bats said. The exchange already offers the service for transactions executed on exchange.

The European Commission is working on an update to its Markets in Financial Instruments Directive, or Mifid. It wants to make a data feed that shows the price, volume and location of individual stock trades. The commission has considered three ways of introducing a consolidated tape: creating competition between different providers, selecting a single provider, or finding a utility to run the project on a non-profit basis.

“As the industry looks ahead to the implementation of new reporting requirements with Mifid II, we see pan-European reporting services as a natural extension of our business,” Hemsley said.

Before it's here, it's on the Bloomberg Terminal.