BATS Global Markets has filed plans to launch a second options exchange with the Securities and Exchange Commission.
The exchange operator plans to launch the additional platform – EDGX Options - in November 2015, pending regulatory approval.
EDGX Options will be based on a customer priority/pro-rata allocation model, while BATS’ existing venue will be renamed BZX Options.
TheTRADEnews.com reported earlier this month that the BATS options market recorded a 9.4% market share in March, more than doubling from a year ago when it had 4.1%.
According to a statement from BATS, the new exchange will allow it to compete for a new segment of order flow that does not trade on the price-time markets that BATS currently operates.
“With two-thirds of US options market volume executed on exchanges with a pro rata model, we see a big opportunity to bring our innovative technology, operating efficiency, market leading pricing, and first-class customer service to help make markets better for participants in this segment of the market,” said Bryan Harkins, executive vice president and head of US markets at BATS.
“We are excited to build on our options momentum with the launch of EDGX Options, which we believe will complement our existing innovative BZX Options market, which is the largest maker-taker options market in the US”