BATS Europe, the largest stock exchange operator in Europe, has agreed to license technology from BIDS Trading – the company behind the largest block trading ATS in the US – to launch a new block trading service. The service will offer buy-side traders a MiFID II compliant platform, with Indication of Interest protection tools and full control until execution to protect against information leakage.
The new service, BATS LIS (Large in Scale), will allow market participants to negotiate large blocks in European equities, without revealing their intentions to the wider market.
The BATS LIS will leverage BIDS trader software and buy-side channel distribution with BATS infrastructure.
According to BATS, BIDS Trader seamlessly integrates with a buy-side trader’s Order Management System and Execution Management System, so that buy-side traders will be familiar with the BIDS LIS via their experience of the BIDS Trader GUI.
BATS LIS is designed to protect buy-side traders against information leakage. It does this firstly by providing a designated broker model which is designed to support existing relationships between the buy-side traders and brokers and secondly it brings together block flow on both the buy and sale side, thereby allowing for greater cross-over opportunities.
Mark Hemsley, CEO of BATS Europe, said: “We’ve listened to the buy-side community in Europe and understand their unique challenges in trading large blocks of stock and we believe that our new LIS service will help them better execute their large in scale trading activity. A complement to our existing order book offerings.”
Tim Mahoney, CEO of BIDS Trading, commented: “Global clients want global solutions. Partnering with BATS Europe allows each of us to bring our core strengths together to provide another piece of the global block trading market to our mutual clients in an efficient manner. Maintaining the important relationships between the buy-side and their brokers and successfully integrating the flows of each on one platform have been the keys to BIDS’ success in the U.S. Partnering with BATS Europe allows us to extend those benefits under the umbrella of the largest Recognised Investment Exchange in Europe.”