Bats Largely Retains Market Share in October, European Business Rises MoM

BATS Global Markets (Bats) has reported its latest monthly volumes and market share for October 2016, which once again held onto its spot as one of the largest exchanges in the US market as well as in exchange-traded-funds (ETFs). The group did see its market share fall slightly MoM however, per a recent Bats statement.

For yet another consecutive month, Bats’ business saw a strong performance during October 2016, which was indicative of its overall market share – the exchange registered a total market share of 20.3%, falling -2.9% MoM from 20.9% MoM in September 2016, making it the second largest US equities market operator. In terms of ETFs, Bats executed a total of 25.0% of trades, making it the largest US market operator for this instrument in October 2016, up from 24.7% in the month prior.

Furthermore, the exchange disclosed its trading figures in October 2016, with its average daily matched volume coming in at 1.29 billion shares, compared with 1.47 billion shares in September 2016, or -12.2% MoM, largely dictated by lower Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term relative MoM. This performance was also a near universal trend at other exchanges, which consequently have incurred similar declines in October.

Delving further into the figures, Bats also saw an average daily matched volume of 1,706,297 contracts across its US equities options during October 2016, retreating from 1,947,236 in September 2016, or -12.4% MoM.

European Snapshot

Looking over to its European business, Bats Europe rose to a 23.5% market share in October 2016, up from 22.7% in September 2016, en route to the distinction of Europe’s largest Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, with an average daily notional value reported registering $10.7 billion (€10.1 billion) vs. $9.9 billion (€9.4 billion) or 7.4% MoM. This trend was also extended to Bats BTXR, which executed a total of $376.4 billion (€355.7 billion) of notional volume in October 2016, compared to $367.9 billion (€347.5 billion) in September 2016, or 2.4% MoM.

Earlier this month, Hotspot, Bats’ institutional spot foreign exchange market, saw its figures decline in terms of average daily volumes, reporting $25.2 billion daily in October 2016, falling -13.7% MoM from $28.3 billion daily in September 2016. Looking at the monthly total number, the figure stood at $531.2 billion in October 2016, which is lower by -14.5% when compared to $621.8 billion in September 2016.

• EUR/USD: 22.5%
• USD/JPY: 15.6%
• GBP/USD: 10.6%
• AUD/USD: 9.1%
• USD/CAD: 8.7%