Exchange Wants to Shake Up End-of-Day Stock Trading Format
- Bats has new way to trade stocks listed by rivals at the close
- Swell of passive investing adds new importance to auctions
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As the minutes tick down to 4 p.m. each trading day, a crucial process plays out in the U.S. stock market. Bats Global Markets wants to shake up how it works.
Bats, recently acquired by CBOE Holdings Inc., is debuting a new way to execute orders during the daily closing auctions, according to a statement Monday. The plan is to siphon off trades that would normally be completed at exchanges owned by NYSE Group and Nasdaq Inc., the two primary places that corporations and ETFs can turn to to get listed in the U.S. Bats says its new system will cost traders less.