Bats Overall Trading Volumes Advance in Europe, US During January

BATS Global Markets (Bats) has reported its latest volumes and market share for the month ending January 2017, which again saw the exchange retain its spot as one of the largest exchanges in the US market as well as in the exchange-traded-funds (ETFs) space.

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The first month of the new year saw an uptick in 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, particularly in the US with the incoming administration of Donald Trump. Moreover, a return to more normalized trading activity following a seasonal lull also influenced volumes.

Bats reported a strong performance over several business segments during January 2017, which was reflective of its overall rising market share – the exchange largely retained its total US market share of 19.3 percent vs. 19.6 percent in the month prior, making it the second largest US equities market operator.

In terms of ETFs, Bats executed a total of 21.6 percent of trades, making it the largest US market operator for this instrument in January 2017. As such, the exchange released its equities trading figures as well with its average daily matched volume coming in at 1.30 billion shares in January 2017, compared with 1.33 billion shares in December 2016, virtually unchanged month-over-month.

Bats also saw an average daily matched volume of 1.8 million contracts across its US equities options during January 2017, climbing 8.4 percent month-over-month against 1.7 million contracts in December 2016.

European Snapshot

Looking over to its European business, Bats Europe saw its market share rise to 21.4 percent in January 2017, up from 20.2 percent in December 2016 – the stock exchange held onto its spot as Europe’s largest, with an average daily notional value reported registering $9.7 billion (€9.1 billion) vs. $9.2 billion (€8.7 billion) or 4.6 percent higher month-over-month.

This growth was also extended to Bats BTXR, which executed a total of $379.9 billion (€357.7 billion) of notional volume in January 2017, compared to $359.1 billion (€338.2 billion) in December 2016, or a growth of 5.8 percent month-over-month.

Earlier this month, Hotspot, Bats’ institutional spot foreign exchange market, saw its figures also grow in terms of total trading volumes. The total foreign exchange trading volumes over Hotspot’s Electronic Communications Network (ECN) Electronic Communications Network (ECN) Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Read this Term) amounted to $651.1 billion. The number is higher by 21.3 percent when compared to December 2016 and by 6.0 percent when compared to January 2016.

• EUR/USD: 25.0 percent
• USD/JPY: 18.7 percent
• GBP/USD: 9.3 percent
• AUD/USD: 6.6 percent
• USD/CAD: 6.4 percent