BATS to launch second exchange

Lots of stock markets offer two platforms. The obvious example is the NYSE Euronext, which operates its NYSE Arca alongside its NYSE Hybrid Market. The Nasdaq OMX operates the main Nasdaq market and the Boston Stock Exchange--which is not technically a stock market--offers two platforms, EDGA and EDGX with different pricing models and make-or-take models. So we should not be surprised that BATS will join the party.

BATS, based in Kansas, has announced it is preparing to formally file an application for the second equities exchange to be called BYX, which will rely on the same technology as its current exchange. The big issue is what kind of pricing innovation will be on display. Some sort of maker-taker offering? The company has given few clues as of yet. But company executives have suggested that the new exchange could "corner 5 percent to 10 percent of market share," notes the Kansas City Business Journal. 

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