Summary
BATS went rapidly from zero to hero in the crowded US MTF marketplace. Now it is seeking to replicate this success within the european Mifid marketplace.
Analysis
When BATS emerged from Kansas City, it was difficult to see how the "wild west" could take on Wall Street but conquer it did and BATS has in many respects made a huge legacy impact on the exchange world, perhaps most notably by popularising "market maker" and "market taker"pricing tiers.
Nevertheless, arriving relatively late to the field in Europe means that BATS may yet have some difficulty making an impact. True, it has sound low-latency technology and it has partnered with a strong fibre-optic network to make the most of any speed advantages it can eke out. Equally, BAST' European CEO Mark Hemsley has a strong pedigree in IT and markets with his former employers, perhaps most notably LIFFE.
However, in a marketplace where the likes of Turquoise still seem to be struggling to really achieve viable traction, it will be a difficult task for BATS to succeed. That said the London arm of the Kansas City parent has already proven once before it can make inroads into highly competitive markets in a remarkably short period of time.
