BATS Unveils Dark Match Program.

Pricing Designed to Encourage Larger Trade Sizes Against Dark Liquidity

KANSAS CITY, Mo. -- BATS Trading Inc., an innovative and technology leading U.S. market center, announces the release of its "Dark Match" pricing, a new program based on trade execution size that is designed to encourage larger trade sizes against dark liquidity on the BATS book.

Dark Match pricing is effective June 2 and subscribers should note that access fees and liquidity rebates for displayed orders at BATS remain unchanged.

On average, 8%-12% of BATS' daily executed volume matches up against hidden liquidity.

Joe Ratterman, chief executive of BATS, said, "The Dark Match program represents a substantial liquidity pool of dark order types on the BATS book and is an innovative way to lower the liquidity access fee for market participants at a time when other market centers are raising prices for a majority of their users.

"On a trade-by-trade basis, the BATS approach involves scaling the liquidity rebate based on execution size while our competitors have dramatically lowered rebates for hidden liquidity and pocketed the savings for themselves," Mr. Ratterman continued. "As the rebate lowers with larger execution sizes, however, BATS passes the savings along to its subscribers in the form of reduced access fees. We feel that this lowered access fee incentive will attract subscribers who are seeking large block executions to our market."

BATS also offers the extra flexibility of a comprehensive minimum quantity implementation, allowing both liquidity providers and removers the ability to target their level of rebate or fee. It should be noted that for Dark Match executions up to 10,000 shares, the BATS hidden order rebate is currently still greater than rebates offered by other market centers.

The BATS platform fully integrates both displayed and hidden liquidity within the same book. This seamless integration provides ample opportunity for price-improvement within the ultra-fast BATS matching engine.

The following pricing table for dark orders will be effective Monday, June 2. Dark Match pricing does not apply to displayed orders, reserve orders, or discretionary orders.

Trade Size     >                    Liqui-              >  Remove


1-500          >                         $      0.0020  >
$
0.0025
501-5,000      >                         $      0.0020  >
$
0.0024
5,001-10,000   >                         $      0.0016  >
$
0.0020
10,001-25,000  >                         $      0.0010  >
$
0.0018
25001+         >                         $      0.0005  >
$
0.0015

The primary driver behind this innovative pricing approach for hidden orders is to allow larger marketable orders routed to BATS the opportunity to fill at a lower access fee if sufficiently sized hidden orders are available. Liquidity removers automatically have this opportunity with no changes to their order. The rebate or fee on each trade will be reflected in FIX tag 9621 (ECNAccessFee).

For examples of how Dark Match interacts with displayed liquidity on the BATS book, please call the BATS trade desk at 816.285.9901.

Earlier this month, BATS unveiled its "Dark Scan" order type, which is designed to pass price improvement and lower access fees along to subscribers.

Under Dark Scan, BATS routes to Dark Liquidity Partners and offers a lower access fee of $0.0005 to its subscribers. After accessing Dark Liquidity Partners - the initial partners are ATD's FAST LP as well as Liquidnet H20 - the remaining shares can match in just 400-500 microseconds at $0.0025 per share on the BATS book, currently the lowest across-the-board liquidity removal rate among major market centers.

To use BATS Dark Scan, please contact your account manager or the BATS trade desk at 816.285.9901.

Randy Williams, vice president of sales and communications, and Jon Schneider, sales manager, are the contacts for BATS connectivity in the U.S. Firms interested in connecting in Europe should contact Ken Conklin, senior vice president of business development, at the coordinates below.

About BATS Trading

BATS Trading, based in Kansas City, Mo., with additional offices in New York , was launched in January 2006 and operates one of the fastest-growing, top-tier equity markets in the United States with plans for a Europe launch in 2008 through its London-based affiliate. The BATS platform is developed by a core team of market and technology professionals, catering to the needs of the broker-dealer community. Included in the BATS customer base are more than 280 broker-dealers and a broad-based ownership group including affiliates of Citi, Credit Suisse, Deutsche Bank, GETCO, JPMorgan, Lehman Brothers, Lime Brokerage, Morgan Stanley, Merrill Lynch, Tradebot and Wedbush. BATS ... Making Markets Better.