BATS sticks with Chi-X tech move

BATS GLOBAL Markets is pushing ahead with plans to move its Chi-X platform, Europe’s largest share trading venue, to its own technology after a software bug forced the exchange operator to take the embarrassing step of pulling its own listing last week.

The third-largest US stock exchange was due to be the first listing on its own marketplace but a software bug caused its share price to plummet from $16 to less than a cent before trading was halted.

Later in the day, BATS took the extremely rare step of withdrawing the IPO altogether and said it would return money to investors who had bought its shares.

Still, BATS Europe, wholly owned by BATS Global Markets, said it would switch Chi-X Europe to its own in-house developed platform next month as scheduled, in a move which will make Chi-X faster and cut costs.

A spokesperson for BATS Chi-X Europe said on Sunday that it had “completed the first dress rehearsal with no issues”.

BATS, which is owned by many of the world’s largest banks and trading firms, was formed in 2005 and has taken on the New York Stock Exchange and Nasdaq in the trading of stocks.

But its desire to challenge established markets in listings took a hit after the debacle last week. The ability to list other firms formed a core part of the BATS’ own business model.

The company has stressed Friday’s software bug was found in technology related to changes it had made to enable its IPO in the US and trading in Europe was not impacted.

BATS completed the acquisition of Chi-X three months ago for $300m.