US options surge drives Bats growth

Bats’ US options market share up to 11.6%, as second quarter revenues climb by over $10 million.

Bats Global Markets reported a record US options market share of 11.6% - up from 9.7% a year ago - in the second quarter this year.

Chief executive officer at Bats Global Markets, Chris Concannon, said US options market share was instrumental to the group’s overall revenue boost.

Group revenues increased by over $10 million - an 11% increase - compared to second quarter last year.

The global markets operator’s US options revenues saw a 84% surge totalling $10.7 million, compared to just $5.8 million in the same period in 2015.

A recent study reported US listed options trading soared to the highest monthly volume in 10 months amid the UK’s referendum and decision to leave the European Union.

Volumes in the second quarter this year were up 4.6% compared to the second quarter last year, boosted by activity in June when contracts totalled over 1 billion.

Bats also announced the launch of BAM (Bats Auctions Mechanism) earlier this month, which is set to extend its US options business further.

The options auctions will run throughout the trading day on Bats’ options exchange EDGX, and are set to go live in November this year.

Head of US markets at Bats, Bryan Harkins, said the launch is a “natural evolution for the Bats options business.”

He added that Bats plans to “aggressively expand [its] US options product suite to deepen liquidity and improve the execution experience for market participants in the coming months.”

Concannon concluded the quarter was a “strong” one for the global trading venue operator, with growth in market share across not only US options, but also US and European equities. 

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