Exchange operator Bats to buy swaps trading platform Javelin

Thursday August 11 th 2016

NEW YORK Bats Global Markets (BATS.Z), the No. 2 U.S. stock exchange operator by volume, said on Thursday it would acquire Javelin SEF LLC, a swaps exchange, for an undisclosed sum to enhance its foreign exchange trading operations.Bats said the deal would help speed up its plans to begin offering trading of non-deliverable forwards (NDFs) for the foreign exchange (FX) market. The Kansas City-based company entered the FX market in January 2015 with its $365 purchase of currency trading platform Hotspot from KCG Holdings (KCG.N). NDFs allow investors to hedge against exposure to restricted foreign currencies against freely traded currencies. Certain market participants are required to trade NDF contracts, which had a daily turnover of $127 billion in 2014, on exchanges under Dodd Frank regulations. “Our acquisition of Javelin underlines our commitment to the FX market and is an acceleration of our FX product rollout plans,” BATS Chief Executive Officer Chris Concannon said in a statement. The transaction is pending regulatory approval. Bats also runs two U.S. options exchanges and the largest pan-European stock exchange. (Reporting by John McCrank; Editing by Tom Brown)