Canada May Get Another ATS

The competition to increase market share in Canada may get tougher. Last week, at the Reuters Global Exchanges and Trading Summit in New York, Joe Ratterman of BATS Global Markets said his company is considering launching a Canadian ATS. "All I can tell you is that on my business to Canada and visiting with firms that have a presence in Canada there's a strong demand for us to come up there. We've heard from a number of participants that say ... we like what you do in the U.S. and we see what you're doing in Europe, and we'd like you to be here." Mr. Ratterman noted he met with three of Canada's big banks which apparently "welcome the competition." He did not say which three banks said this. Presently, BATS Global Markets, based in Kansas City, has the third-largest United States securities exchange. It now handles 10 per cent of U.S. stock trading after launching four years ago. It also claims its European exchange, BATS Europe, captures 8 to 10 per cent of trading on the Financial Times and the London Stock Exchange index (FTSE 100) and 4 to 5 per cent of the overall Europe market.

Another noteworthy presence at the Reuters summit in New York was Jos Schmidt, Alpha's chief executive officer, who reflected on the success his young ATS has achieved to date. He told Reuters that after just one year Alpha regularly captures over 20 per cent of the Canadian market share. He added, "Give us another two years to achieve a 30 to 40 per cent market share." Without being specific, he says Alpha will do this through aggressive pricing and diversifying the ATS's product offering. Mr. Schmidt also said Alpha turned a profit in the fourth quarter of 2009, something its chief competitor, the TMX Group, was unable to do.

by Stockwatch Business Reporter