BATS Global Markets (BATS:BATS), the owner of institutional forex trading platform HotSpot FX announced it is creating the Bats Community Policing Program for its US equities and options exchanges.
The program, which will launch in August 2016, is designed to enhance security and the company’s monitoring of the markets for unethical behavior, dodgy practices and unwanted trading.
“We believe this initiative will be an important innovation in the Bats regulatory program, creating a healthy forum for industry participants to share market intelligence directly with the Bats regulatory staff,” said Bats Chief Regulatory Officer and Executive Vice President Tami Schademann. “By creating a collaborative forum for the sharing of information, our customers can help to enrich our market surveillance program, leading to better surveillance and more investigations of unwanted behaviors in our market.”
The new security program of the company will work in combination with the Bats Client Suspension Rule, which came into effect this February and allows the company to eliminate manipulative behavior, such as spoofing and layering, on the Bats Exchanges, by suspending the accounts of those who practice it.
Unlike some other whistleblower programs, such as that of US Securities and Exchange Commission (SEC), which hands out generous prizes, the policing program of BATS will not be incentive-based.
BATS Global Markets is a US-based operator of exchanges and services for financial market. It is headquartered in Kansas City and has offices in New York, London, Chicago and Singapore. The company owns four US equities exchanges – BZX, BYX, EDGX, EDGA, one European equities exchange – Bats Europe, one US options exchange – Bats Options, and one institutional forex trading platform – HotSpot FX, which it acquired in January 2015. In May this year BATS Global Markets was included in the Wilshire 5000 Total Market IndexSM (Wilshire 5000).