BATS Global Markets said it closed its acquisition of Chi-X Europe and now operates it as part of BATS Chi-X Europe.

The Lenexa, Kansas, operator of trading venues in the United States and Europe said it will move the Chi-X trading operations onto BATS trading technology by the end of June next year.

For the moment, the combined BATS Chi-X Europe operation now ranks as the largest pan-European trading venue, ahead of the London Stock Exchange.

But both will trail the combined trading volume of markets operated by Deutsche Boerse and NYSE Euronext, if they are successful in completing their own plan to merge.

BATS Chi-X Europe in the last five days accounted for about 24 percent of pan-European trading, by BATS accounting. DB and NYSE Euronext accounted for 28 percent, between them. The LSE accounted for a bit less than 20 percent.

Planning for the migration of the Chi-X Europe trading platform to BATS Europe technology will begin immediately. The technology migration is expected to be completed in the second quarter of 2012.

“By leveraging the mutual resources of BATS and Chi-X Europe, we are now even better positioned to keep Europe’s markets competitive, as well as affect market structure reforms that support competition and innovation that ultimately benefit investors at all levels,” said Joe Ratterman, chairman and chief executive officer of BATS Global Markets.

BATS Europe Chief Executive Officer Mark Hemsley will initially head both the BATS Europe and Chi-X Europe organizations and will assume the CEO role for the combined BATS Chi-X Europe entity following the transfer of business, which is anticipated in January 2012.

Mr. Hemsley said BATS “will move expeditiously to complete the integration of Chi-X Europe.”

BATS signed an agreement to purchase Chi-X Europe in February. The United Kingdom’s Office of Fair Trading referred the proposed combination to the UK Competition Commission in June.

BATS last week received formal approval from the UK Competition Commission to complete the acquisition.

This fall, BATS Europe moved to set itself up to absorb the technical operations of Chi-X Europe.

BATS Europe migrated its matching engine and infrastructure to Equinix’ London LD4 International Business Exchange.

That is the same data center which houses Chi-X Europe operations.

BATS Europe had operated at a Savvis data center in London’s Docklands district since launching in 2008.

Chi-X Europe currently operates its primary and secondary co-location facilities at Equinix data centers in London. Chi-X's primary location is London LD4 and the backup is London LD3. Chi-X Europe also employs an Equinix IBX in Frankfurt.

-- This article first appeared on Securities Technology Monitor.





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