The SEC approved BATS Global Markets' plans for its second options exchange, EDGX Options, the agency said in a filing.
EDGX Options will join BZX Options Market as the exchange operator's two options markets. The new exchange will open Nov. 2, BATS said in a news release. The new exchange will become a member of the Options Clearing Corp.
The new EDGX Options market will use a customer priority/pro rata allocation model, in which non-professional orders are executed before professional orders, said Stacie Fleming, BATS spokeswoman. BZX Options uses a price-time priority model where orders are ranked and executed according to price first and then time they arrived, Ms. Fleming said.
BATS had applied to the Securities and Exchange Commission on April 16 for approval of the new exchange.
