Direct Edge to Adopt BATS Data Feeds, Tech Following Merger
Jersey City-based exchange Direct Edge will scrap its market datafeeds and trading technology, and migrate to those of BATS Global Markets, following the announcement earlier today that BATS will acquire Direct Edge for an undisclosed sum in a deal that is expected to close in the first half of next year.
The four US equity markets run by BATS and Direct Edge -- BATS' BZX and BYX exchanges and Direct Edge's EDGX and EDGA exchanges -- will remain in operation but will run "exclusively on the proprietary BATS technology," according to a statement from the two venues.
A spokesperson from BATS confirms that all current market data feeds offered by Direct Edge -- including its full depth of book feeds which cover order executions, order cancellations, security status and administration information, and all displayed orders for Nasdaq, NYSE, NYSE Amex, and NYSE Arca-listed securities trading on EDGA or EDGX exchanges -- will be replaced with new feeds based on the BATS proprietary PITCH protocol, though further details are unavailable at this time.
The migration process is expected to be similar to that of European multilateral trading facility (MTF) Chi-X Europe, which completed the technical migration to BATS' datafeeds and technology in April 2012, after being acquired by Bats Global Markets and merged with rival MTF, BATS Europe to form BATS Chi-X Europe in 2011.
The combined company will be headquartered in Kansas City in Missouri, where BATS is currently based, and will be headed by BATS CEO Joe Ratterman, while William O'Brien, CEO of Direct Edge will serve as president.
"Direct Edge and BATS were both founded on a commitment to create an optimal trading experience for a diverse member base, from retail investors to broker-dealers to institutions. Together, the best of both organizations will work to further improve how the world trades, consumes market data, and accesses capital markets," O'Brien said in a statement.
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