The UK Financial Conduct Authority (FCA) has approved BATS Global Markets’ application for its BATS Chi-X Europe platform to be granted Recognised Investment Exchange (RIE) status. The new status, which takes effect on 20 May 2013, means BATS will be authorised to operate a Regulated Market for primary listings.

Mark Hemsley, CEO of BATS Chi-X Europe.

As a RIE, BATS will be able to compete against mainstream European exchanges, such as the London Stock Exchange, NYSE Euronext and Deutsche Borse, for primary listings of exchange-traded funds (ETFs).

BATS has a similar status in the US, where it has recently been the location for a number of primary ETF listings including products from ETF giant iShares and alternatives specialist ProShares.

BATS Chi-X Europe was formed in 2011 from the combination of two multi-lateral trading facilities (MTFs), BATS Europe and Chi-X Europe. It is the largest pan-European equities market operator in terms of market share and notional value traded.

Mark Hemsley, CEO of BATS Chi-X Europe, said: “With FCA approval of our RIE application, we will be even better positioned to support the vision of a borderless European capital market and to compete in other areas, such as primary listings. Our RIE status also enables a broader range of retail investors and buy-side firms to connect to our market and enjoy the benefits of competition that MiFID allowed, including trading venue choice, lower fees and improved service and technology.”

He added: “As a rigorously regulated MTF, we made considerable investment in risk management, market surveillance, and regulatory tools and resources. This investment will continue with our RIE status, as we further enhance our technology, products and services.”

BATS submitted its application to the Financial Services Authority (FSA), which became the FCA on 1 April 2013, in December 2012.