BATS Global MarketsBATS
Fri, Dec. 2, 9:38 AM
- The merger with Bats Global (BATS:BATS) has the potential to generate higher volumes thanks to the introduction of Bats trading technology to CBOE (CBOE +1.4%) products, says JPMorgan's Kenneth Worthington, upgrading to Overweight from Neutral. The price target is lifted to $84 from $78, and suggests 20% upside from yesterday's close.
- Source: TheFly
Thu, Nov. 3, 7:08 AM
Fri, Oct. 14, 9:00 AM
- (BATS:BATS) exchanges reports overall market share of 20.9% with AVD of 1.47B shares vs. market share of 22.0% in Sept. 2015.
- U.S. Equity Options: Market share of 11.7% with AVD of 1.947M contracts vs. market share of 11.0% in Sept. 2015.
- European Equities: Market share of 22.7% with average daily notional value of €9.4B vs. market share of 24.8% in Sept. 2015.
Tue, Sep. 27, 7:27 AM
- Credit Suisse's Christina Bolu pulls his Underperform rating on CBOE Holdings (NASDAQ:CBOE) following its agreement to purchase Bats Global (BATS:BATS). He lifts the price target to $67 from $60 (yesterday's close was $66.59). The new rating is Neutral.
- Management's strategic rationale seems sound, says Bolu, and there's little downside to the new price target.
Mon, Sep. 26, 7:40 AM
- As floated late last week, CBOE has agreed to purchase Bats Global Markets (BATS:BATS) in a cash (31%) and stock (69%) deal valued at about $3.2B, or roughly $32.50 per Bats share. Bats closed at $31.80 on Friday.
- CBOE expects to realize $50M of expense synergies within three years of closing, increasing to $65M within five years.
- The deal should be accretive to adjusted EPS in year one.
- Bats CEO Chris Concannon will become president and COO of the combined company. CBOE CEO Edward Tilly will remain CEO.
- A conference call is set for 8 ET.
Thu, Sep. 22, 5:43 PM
Tue, Aug. 30, 2:30 PM
- Bats Global Markets (BATS +3.2%) is shifting a rebate program from ETP issuers to market makers.
- The previous Issuer Incentive Program offered an annual incentive payment of up to $400K to ETP providers for each fund with average daily volume over 1M shares per day.
- Following extensive conversations with industry participants, the new scheme is called the Lead Market Maker Partnership Program, and will reward market makers for hitting certain volume targets. The hope is that liquidity will increase and bid/ask spreads will tighten, leading to boosted assets in ETPs.
Thu, Aug. 4, 7:21 AM
Tue, Jul. 26, 11:30 AM
- Bats (BATS:BATS) and the NYSE (NYSE:ICE) have received SEC approval to adopt generic listing standards for actively managed ETFs.
- Under previous guidelines, the agency had to approve active ETFs on a case-by-case basis - typically a costly and lengthy process which scared away many small ETF sponsors.
- Bats chief Chris Concannon: “This is a pivotal moment for the ETF industry as the introduction of these standards will help issuers of all sizes bring innovative funds to the market in weeks instead of months, and with more certainty of approval."
Tue, Jun. 21, 12:40 PM
- The current stock valuation above that of peers is "unwarranted given [the company's] concentration in highly competitive businesses as well as its reliance on difficult to defend SIP fees to generate earnings," says RBC Capital's Andrew Bond, initiating coverage on BATS Global (BATS -3%) with an Underperform rating and $23 price target.
- Bond estimates 50% of the company's net income comes from consolidated tape revenue (SIP), which is mainly linked to market share and faces constantly increasing competition. He notes BATS' pricing is well below those of peers, yet its market share has remained flat.
Sat, Jun. 18, 7:40 AM
- The nod from the SEC means the "Flash Boys" will be able to challenge the NYSE (NYSE:ICE), Nasdaq (NASDAQ:NDAQ), and Bats Global (BATS:BATS) as this country's 13th national stock exchange.
- IEX's "speed bump" delays orders by an infinitesimal amount, but it's enough to protect investors from high-frequency trading which can front-run slower orders on the other exchanges. Opponents of IEX like hedge fund manager and electronic market-market Citadel say the delays create stale prices and the opportunity for manipulation.
- The approval by the SEC had been expected after a report earlier this week that agency staff had recommended such.
Tue, Jun. 14, 2:27 PM
- The SEC staff has recommended the agency approve IEX Group's bid to launch a new stock exchange, according to the WSJ. The agency's commissioners will vote on the matter on Friday, and while they aren't required to support the staff's views, it's rare when a formal recommendation is rejected.
- Were the "Flash Boys'" to win approval, it would be the first major new stock exchange in the U.S. since a number of other venues were greenlighted in 2010 - they're now owned by BATS Global (BATS -0.5%).
- IEX's angle, of course, is its "speed bump" which the company says will protect investors from the abuses of high-frequency trading.
- In addition to BATS, IEX is also a challenge to the NYSE (ICE -0.6%) and Nasdaq (NDAQ).
Tue, May 10, 10:39 AM
- Initiating with an Outperform rating and $30.50 price target (vs. current $25.16), KBW says the BATS's competitive positioning should allow it to continue gaining market share in some products and enable pricing power in others.
- "A great hedge for choppy markets," says Morgan Stanley's Betsy Graseck, "since exchanges outperform when volatility is high or rising." She rates the stock at Equalweight with $26 price target.
- Though believing market share opportunities still exist, Goldman's Alexander Blostein sees "limited growth in most of BATS’ asset classes (equities, options and FX), with competitive forces pressuring industry pricing." Deeming the stock fully valued, he initiates with a Neutral and $25 price target.
- The stock's lower by 3% today.
Fri, May 6, 8:41 AM
- Bats Global Markets (BATS:BATS) declares $0.08/share quarterly dividend.
- Forward yield 1.33%
- Payable Sept. 28; for shareholders of record Sept. 14; ex-div Sept. 12.
Thu, May 5, 4:58 PM
- Bats Global Markets (Pending:BATS): Q1 EPS of $0.37 beats by $0.07.
- Revenue of $111.8M (+35.0% Y/Y) beats by $4.8M.
Wed, Apr. 20, 1:15 PM
- Growth is the issue, says analyst Patrick O'Shaughnessy, starting coverage on Bats Global (BATS -1.6%) with an Underperform rating.
- The company, he says, could struggle to meet its organic growth target in the high-single digit percentage area thanks to low volume growth, lack of market share growth, and ongoing pricing pressure. A full 29% of revenue comes from consolidated tape revenue over which the company has no control over pricing, and revenue upside is tied entirely to market share.
- What about M&A, of which Bats has a strong record? This could be difficult to replicate, he says, as there are relatively few targets similar to the Direct Edge and Chi-X-Europe purchases. Bats, he says, could be forced to broaden horizons as it did with its 2015 purchase of ECN Hotspot.
- Now read: BATS Global Markets: Put It On Watch List (April 14)