More share trading firms prepare to swoop on European markets

Bats' trading platform nears final IT testing to increase competition in equities markets

Bats will join the UK's competitive trading market

Bats Trading has received authorisation from the Financial Services Authority to begin operations in Europe as a multi-lateral trading facility in competition with the London Stock Exchange.

The European division of the US equity trading platform is undergoing general IT testing prior to a launch on 31 October.

Bats Trading will add the first 10 UK securities on that day and will extend trading in the London Stock Exchange, NYSE Euronext and Xetra securities by 19 November.

"We are pleased to announce this news, and our 31 October launch is ahead of the schedule we set back in March when we announced our Europe plans," said Mark Hemsley, chief executive at Bats Trading's European markets division.

"We look forward to bringing Bats' unique blend of speed, efficiency and customer service to pan-European trading as we strive to make markets better."

The company will face competition from other multi-lateral trading facilities, such as Turquoise which is backed by nine investment banks and has been in operation since August.

Bats Trading is attempting to take advantage of competition driven by the Markets in Financial Instruments Directive rules that aim to liberalise equity trading across Europe.