BATS a Victim of its Own IPO Volume, Trader Says
A spike in trading volume on the BATS Exchange stoked by its IPO may be a culprit for both today’s BATS market meltdown and a few bad Apple trades, a long-time trader tells us.
“BATS is a global market machine, they go public and they want the first print (trade) on their systems. They put all the stuff in and it crashed their system,” a Wall Street trader speculates. “At the same time, a couple of orders for Apple got caught up in this.
“It was 1000% related. I don’t believe in coincidences.”
BATS hasn’t announced the reasons for the breakdown. The exchange hasn’t returned calls for comment. On the BATS website, its latest upsaid it will be “further delaying the quoting and auction period for symbol BATS. We will advise on further updates.”
The Securities and Exchange Commission said it is looking into the events at BATS but hasn’t yet determined what occurred.
BATS, which priced Thursday night and debuted this morning, was halted by Nasdaq for “clearly erroneous” trades after it opened.
BATS, the U.S.’s third-largest stock exchange company, said it wanted to try its IPO again in the afternoon, but has canceled the plan. The exchange operator’s website now says it will be “further delaying the quoting and auction period for symbol BATS. We will advise on further updates.”
BATS also had trouble with glitches of shares on its exchange. Prominently, shares of Apple were halted for five minutes after erroneous trades were made on BATS’s exchange. Apple shares were recently down 0.4% at $596.97.
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