NEW YORK, June 28 (Reuters) - BATS Trading Inc. founder Dave Cummings will step down as chief executive officer, as the upstart electronic trading venue prepares to file for exchange status.
“It’s certainly not normal for an exchange executive to own a broker-dealer,” Cummings said in an interview with Reuters. “It’s one of the things we need to do to prepare to become an exchange.”
Cummings owns Tradebot Systems Inc., the proprietary trading firm he founded, and will now become its chairman.
BATS Trading has quickly grown into one of the largest alternative trading venues in the country since it launched in January 2006. It currently has about 10 percent to 12 percent of daily U.S. trading volume, the company said.
BATS has taken market share primarily from Nasdaq Stock Market Inc. (NDAQ.O) and the New York Stock Exchange, owned by NYSE Euronext NYX.PANYX.N.
Joe Ratterman, BATS’s chief operating officer, will take over as CEO from July 1. Cummings will remain involved in BATS as a board member.
BATS is engaged in an “informal review process” with the U.S. Securities and Exchange Commission about applying for exchange status, a spokesman said.
Ratterman, who has been handling the SEC application process, said he would focus on increasing BATS’s market share to 20 percent to 30 percent of daily U.S. trading volume.