Bats gets $45 million injection of funds; moves to apply for exchange status
25 May 2007 | 7730 views | 0
Bats Trading, the operator of an all-electronic alternative to Nasdaq and Nyse in the US, has closed on $45 million in additional funding from one new investor and other existing investors.
Bats CEO Dave Cummings revealed the financing in an e-mail to investors on Thursday, but declined to identify the new stakeholder.
The ECN, which has been engaging in a costly price war for liquidity with incumbent heavyweights Nasdaq and Nyse, has in the past scooped up funding from some of Wall Street's biggest brokers, including Merrill Lynch, Morgan Stanley, Lehman Brothers, and Credit Suisse.
The Bats network currently handles about 10-15% of Nasdaq-listed shares.
The company is preparing to step up its campaign against Nasdaq by applying to the Securities and Exchange Commission for permission to operate as a fully-fledged stock exchange.
The plans were outlined by Cummings in the e-mail circular. "The approval process is lengthy, and we now have the resources to be patient," he said.
UPDATE Bats confirmed on 31/05 that Citi has made a minority equity investment in the ECN.