BATS in talks over deal to break into European futures market
BATS Europe is in talks with exchange rivals over a clearing deal that will allow the share trading platform to break into European futures and challenge incumbents NYSE Euronext and Deutsche Boerse.
BATS Europe, which handles about a quarter of European share trading, has approached the main exchanges about recruiting their clearing houses to back its push into futures, something it plans to do this year.
“We have been talking with the various European clearing houses for a while now and we now know where the various clearing providers are,” said BATS Europe chief executive Mark Hemsley.
The main European derivatives clearers are LCH.Clearnet, which is set to be bought by the London Stock Exchange, Deutsche Boerse’s Eurex Clearing, CME Clearing Europe, part of the CME Group and ICE Clear Europe, from the IntercontinentalExchange.
BATS Europe, part of BATS Global Markets, does not operate its own clearing house unlike most of its rivals, and, therefore, needs to partner with another exchange to help it launch European futures trading.