Although BATS Global Markets experienced a high-profile trading blunder on Applethat forced the exchange to withdraw its initial public offering on Friday, the company’s CEO and president remains positive about its market structure.
“I think when you actually go into the market on a regular basis, you can have confidence that your order’s going to get executed and returned to you very quickly,” said Joe Ratterman, BATS’ chief executive. “The flash crash was two years ago — this is unrelated to that.”
Due to a software glitch, BATS executed a trade of 100 Apple shares in error that caused the tech company’s shares to fall sharply, which triggered a circuit breaker on its stock. Apple shares were halted temporarily before they resumed trading minutes later.
Ratterman told CNBC that trading in general is more price-effective than it used to be, and that the markets are more efficient today than before.
Although BATS’ founder and current board director, Dave Cummings, said the exchange could still go public in the second quarter, Ratterman said the company has no additional plans yet.
“We have to regroup and we have to earn back some confidence, and we need to reconvene with our Board, and we’ll figure out what the next steps are,” he said.Page 1 of 2 | Next Page