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BATS Chi-X Europe, Europe’s largest equity exchange, has revealed plans to launch a pan-European listings business which aims to address specific inefficiencies in the European exchange-traded fund (ETF) market.
The announcement comes just five months after the exchange was granted Recognised Investment Exchange (RIE) status by the UK’s Financial Conduct Authority (FCA).
As an RIE, BATS is authorised to operate a regulated market for primary and secondary listings alongside its existing business.
The listings business, which will be headed up Guy Simpkin, looks set to get off to a bright start having signed up iShares, the world’s largest provider of ETFs, as the first issuer to list on the regulated market segment of the exchange.
The initial ETFs, the iShares MSCI Emerging Markets UCITS ETF (IEEM) and iShares MSCI World Minimum Volatility UCITS ETF (MVOL), are scheduled to commence trading on the exchange in November 2013 as secondary listings.
Mark Hemsley, CEO of BATS Chi-X Europe, said “As a truly pan-European Recognised Investment Exchange, we are delighted to partner with a market leader such as iShares as we work to bring innovation and deeper liquidity via a single pan-European market. Building on the success of our US ETF listings business, we will work closely with issuers and trading participants to address the need for more transparency and liquidity in exchange-traded products.”
Leland Clemons, Head of Capital Markets EMEA for iShares, added: “iShares is excited to be the first ETF provider to cross-list products on BATS Chi-X Europe. We anticipate that their innovative program will add liquidity to the European ETF market and support our ambitions to grow the market by delivering an improved trading experience for investors.”
The exchange is seeking to implement a range of initiatives targeted at enhancing the European ETF market. Among its innovations is a liquidity programme designed to incentivise market makers to provide the quality of order books required to attract a diverse range of investors to issuers’ products.
BATS Chi-X Europe is a subsidiary of US-based BATS Global Markets.