One of the largest multilateral trading facility (MTF) operators, BATS Global Markets, has received approval from UK regulators to change the designation of BATS Chi-X Europe to a Recognized Investment Exchange (RIE).
BATS Chi-X Europe will become an RIE on May 20, 2013. Its initial application was filed with the UK Financial Services Authority in December 2012, before the regulator split into the Financial Conduct Authority (FCA) and other arms in April.
An RIE is an investment exchange recognized by the FCA, under the Financial Services and Markets Act (FSMA). RIEs is exempt from the requirements to hold authorization as an investment house, whereas MTF are not, and may operate both regulated markets for primary listings and MTFs. BATS says that the change will broaden its market traction with buy-side firms and those that are obligated to send orders to RIEs.
"With FCA approval of our RIE application, we will be even better positioned to support the vision of a borderless European capital market and to compete in other areas, such as primary listings," says Mark Hemsley, CEO at BATS Chi-X Europe. "Our RIE status also enables a broader range of retail investors and buy-side firms to connect to our market and enjoy the benefits of competition that the Markets in Financial Instruments Directive allowed, including trading-venue choice, lower fees and improved service and technology."
For a deeper list of similarities and differences between an RIE and an MTF, see this Turquoise-produced document.
James and Anthony talk about the looming Sibos event in Toronto and take a look at some recent M&A activity and blockchain developments in the capital markets.Subscribe to Weekly Wrap emails