We have long predicted the consolidation of SEFs, and the recently announced purchase by BATS Global Markets of the Javelin SEF could be the start of a trend. Its a logcial acquisition for BATS, which is looking to expand its FX operations.
Bats Global Markets (BATS.Z), the No. 2 U.S. stock exchange operator by volume, said on Thursday it would acquire Javelin SEF LLC, a swaps exchange, for an undisclosed sum to enhance its foreign exchange trading operations. Bats said the deal would help speed up its plans to begin offering trading of non-deliverable forwards (NDFs) for the foreign exchange (FX) market. The Kansas City-based company entered the FX market in January 2015 with its $365 purchase of currency trading platform Hotspot from KCG Holdings (KCG.N). "Our acquisition of Javelin underlines our commitment to the FX market and is an acceleration of our FX product rollout plans," BATS Chief Executive Officer Chris Concannon said in a statement.