MarketsMuse Strike Price section spots news that BATS Global has received approval from the Securities and Exchange Commission to open its second options trading venue, EDGX Options. Launch of the EDGX Options system is tentatively set for Monday, November 2, BATS said.
The actual SEC Approval Order from the SEC can be found here.
As reported by Traders Magazine, EDGX Options will be based on a customer priority/pro rata allocation model and is designed to complement its BZX Options market, the exchange operator’s first U.S. options market which had a 10.8% market share in July, and one that is a “pure” price-time priority market. The launch of EDGX Options will enable BATS to compete for a new segment of order flow that does not trade on the price-time markets that BATS currently operates.
“We are pleased to receive approval from the SEC to launch EDGX Options and we are looking forward to making our mark in a new segment of the options market,” said Bryan Harkins, executive vice president and head of U.S. Markets at BATS. “Two-thirds of U.S. options market volume is executed on exchanges with a pro rata model and we believe we can help make markets better for participants in this segment of the market through our innovative technology, operating efficiency, market-leading pricing, and first-class customer service.”