BATS is a stock exchange

Stock exchange

A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

 based in Lenexa, Kansas

Lenexa, Kansas

Lenexa is a city in the central part of Johnson County, located in northeast Kansas, in the central United States of America. As of the 2010 census, the city population was 48,190. As a satellite city of Kansas City, Kansas, Lenexa is included in the Kansas City Metropolitan Area...

, a satellite city of Kansas City, Missouri

Kansas City, Missouri

Kansas City, Missouri is the largest city in the U.S. state of Missouri and is the anchor city of the Kansas City Metropolitan Area, the second largest metropolitan area in Missouri. It encompasses in parts of Jackson, Clay, Cass, and Platte counties...

. BATS was founded in June 2005 as an ECN

Electronic communication network

An electronic communication network is the term used in financial circles for a type of computer system that facilitates trading of financial products outside of stock exchanges. The primary products that are traded on ECNs are stocks and currencies. The first ECN, Instinet, was created in 1969...

and its name stands for Better Alternative Trading System.

In May 2011, the company filed with the SEC to raise up to $100 million in an initial public offering.

BATS operates two stock exchanges in the U.S., the BZX Exchange and the BYX Exchange (The BATS Exchanges), which currently account for about 10-12% of all U.S. equity trading on a daily basis.