finra

FINRA

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For Release:
Contacts:

February 6, 2014
FINRA
George Smaragdis (202) 728-8988
Nancy Condon (202) 728-8379

BATS
Jim Gorman (201) 942-8234

 

 

BATS Global Markets, FINRA Enter Regulatory Service Agreement

With the Addition of BATS, FINRA Will Conduct Cross-Market Surveillance for Nearly 100 Percent of U.S. Equities Trading

 

KANSAS CITY, Mo., and WASHINGTON D.C. — BATS Global Markets, Inc. (BATS) has signed an agreement with the Financial Industry Regulatory Authority (FINRA), the independent, non-governmental regulator for all securities firms doing business with the public in the United States, to provide cross-market surveillance services to BATS' four stock exchanges- BZX, BYX, EDGX and EDGA, along with certain other regulatory services.

 

By aggregating trading data from BATS with data from NASDAQ's, NYSE Euronext's and FINRA's equity markets, and the two exchanges previously operated by Direct Edge that were recently merged with BATS, FINRA will be able to conduct comprehensive surveillance across 99 percent of the market for U.S. listed equities. Presently, FINRA conducts cross-market surveillance for 90 percent of the listed equities market. Through comprehensive cross-market surveillance, FINRA is able to detect and deter instances where a market participant engages in potentially abusive conduct on two or more markets in an attempt to avoid detection. The expansion of FINRA's cross market surveillance program to 99 percent of the market by virtue of the inclusion of all of BATS' exchanges promotes the effectiveness of the program and further protects investors and market integrity.

 

Allowing for necessary technical and operational configuration changes, it is expected that BATS will be included in FINRA's cross market surveillance program during the first quarter of 2015. Effective immediately, FINRA will also perform examination and disciplinary services on behalf of BATS.

 

"We're pleased to sign this agreement with FINRA, adding to our existing robust program to help protect investors and oversee the integrity of our markets," said Tami Schademann, Executive Vice President and Chief Regulatory Officer of BATS Global Markets.

 

"FINRA's comprehensive cross-market surveillance patterns will soon cover nearly 100 percent of the listed equities market. With this agreement, we will be better positioned to fulfill our mission of protecting investors by detecting and pursuing cross-market abuses and identifying new threats to the integrity of our markets," said Thomas Gira, FINRA Executive Vice President, Market Regulation.

 

About BATS Global Markets, Inc.
BATS Global Markets, Inc. is a leading global operator of securities markets, committed to Making Markets Better for traders, investors and issuers. In the US, BATS operates four stock exchanges – BZX, BYX, EDGX and EDGA – and regularly ranks as the top market for ETF and retail-driven liquidity. The company is an important listing venue for ETFs and other structured products and also operates BATS Options, a US equity options market. In Europe, BATS operates the largest pan-European equities exchange, offering trading and listing services across 15 major European markets. With its world-class proprietary technology and relentless customer focus, BATS strives to bring efficiency, transparency and fairness to market participants. The company is headquartered in Kansas City with offices in the New York area and London. Further information on BATS can be found at www.bats.com and by following us on Twitter @BATSGlobal.

 

About FINRA
FINRA, the Financial Industry Regulatory Authority, is the largest independent regulator for all securities firms doing business in the United States. FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. FINRA touches virtually every aspect of the securities business – from registering and educating all industry participants to examining securities firms, writing rules, enforcing those rules and the federal securities laws, informing and educating the investing public, providing trade reporting and other industry utilities, and administering the largest dispute resolution forum for investors and firms. For more information, please visit www.finra.org.