Hotspot, a leading institutional foreign exchange (FX) market owned and operated by BATS Global Markets, today announced plans to expand its European presence with the launch of its first Europe-based FX matching engine later this year.
BATS President Chris Concannon said, "This project is important for our current – and future – customers as it gives BATS a larger footprint in the leading trading centre in the FX world. As home to more than 50% of currency trading globally*, and growing, the European market is a top priority for the Hotspot team.
"BATS already operates Europe's largest equities exchange and we have similar ambitions for Hotspot in FX," Mr. Concannon said.
The new matching engine will reside in the London Slough Campus data centres and will leverage the existing Hotspot client base and the vast relationships and infrastructure BATS already has in place in Europe. More than one third of all equity trades executed in Europe touch the BATS exchange or trade reporting systems every day.
Bill Goodbody, Jr., BATS Senior Vice President, Foreign Exchange, and the business manager of Hotspot since 2008, said, "We plan to move swiftly with this project to meet the demand from European customers. Throughout this process, our customers can expect the same high level of service and performance they've come to know from Hotspot."
Hotspot, which was acquired by BATS on 13th March, will continue to operate its matching engine in the New York area. The London matching engine will target Europe and Asia and specific FX currencies that dominate the European and Asian trading hours.
Hotspot's average daily volume in the fourth quarter 2014 was $31.7 billion, an increase of about 20% from the first half of 2014. The company's diverse customer base of more than 220 clients includes banks, market makers, hedge funds and institutions.
As previously announced, Mr. Concannon becomes CEO of BATS on 31st March, and remains president. He takes over from Joe Ratterman, who becomes Chairman after successfully leading the company through significant growth during his eight years as CEO.