BAT Chi-X Europe has applied to the Financial Services Authority (FSA) to become a Recognized Investment Exchange (RIE) under its Financial Services and Markets Act 2000 Section 287.
Through the application, BATS, Europe?s biggest share trading platform,?is trying to expand business to offer the primary listings of equities and possibly other asset classes in the future, according to Finextra.com.
Should the exchange receive approval, it will be the first European alternative trading system to become a RIE and further challenge traditional venues including Deutsche Boerse AG, NYSE Euronext and London Stock Exchange Group Plc.
For its clearing services, BATS plans to keep its interoperable clearing model which includes four clearing houses: EuroCCP, EMCF, LCH and X-clear.
The regulator Office of Fair Trading (OFT) will review the application and decide if the move would impair?competition, according to a statement on its website. The review date ends on March 12, 2013.
Mark Hemsley, chief executive officer of Bats Chi-X Europe, said to Bloomberg, “A review of our RIE submission by the OFT is part of the standard application process.?We look forward to working closely with the OFT to complete the assessment.?
After its 2006 launch, Chi-X Europe took more than a fifth of all European-traded shares and since BATS Global Markets bought it in 2011, market share has increased to approximately a quarter, reported the Financial Times.