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`Flash Boys' Market Loses Support From Bats as Opposition Mounts

Bats changes position on IEX application to become an exchange
IEX debate heats up before SEC decision due by March 21

Investigators for the Securities and Exchange Commission and Justice Department get so many e-mails they can’t possibly review them all without using Control-F, said Reed Brodsky, a partner at Gibson, Dunn & Crutcher LLP who prosecuted Rajaratnam when he was with the U.S. Southern District. — Photographer: Joshua Roberts/Bloomberg

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February 12, 2016, 4:18 AM UTC

Bats Global Markets Inc. has changed its mind about IEX Group Inc.’s controversial proposal to become a U.S. stock exchange.

Bats withdrew support for the upstart venue’s bid, saying in a letter to regulators on Thursday that IEX made “gross misrepresentations” about the operations of competitors. IEX’s actions "call into question the applicant’s professional judgment," Bats said in the letter to the Securities and Exchange Commission, a copy of which was obtained by Bloomberg News.