BATS Chi-X sets sights on Swiss ETFs through BX deal
Europe’s largest alternative trading venue BATS Chi-X Europe is set to target the Swiss equities market, through a deal with BX Swiss, an independent exchange. The deal focuses on cross-listings for exchange-traded funds, and trade reporting services, challenging the SIX Swiss Exchange.
The partners are hoping that they can take market share from SIX Swiss by luring investors with the prospect of a quicker and cheaper way to list European ETFs, through cross-listing. BATS is known as a low-cost trading venue, while BX is a recognised Swiss exchange able to list funds under Swiss law. BX Swiss has existed since 1884, and generally focuses on small and medium cap stocks, although it offers 1,000 blue chip stocks as well.
The partners also say that they can reduce the cost of reporting OTC trades because the partnership allows them to act as an official Swiss trade data monitor and use BATS Chi-X Europe’s BXTR trade reporting platform.
“We made our name by offering solutions that both improve market efficiency and reduce customer costs,” said Mark Hemsley, chief executive at BATS Chi-X Europe. “Our partnership with BX is no different: through a coherent, coordinated effort the BATS and BX teams will bring new competition and innovative improvements to the Swiss marketplace.”
BATS has been focusing on ETFs for some time, partly because they have become increasingly popular around the world as a simpler, easier to use alternative to stock picking. But the company has also highlighted the fact that the European ETF market is much smaller than the US. Back in October 2013, Hemsley said that BATS aims to grow the European ETF market as the company prepared to enter the European listings space. BATS became a stock exchange in May 2013.