BATS Extends Its Global, Market Reach With $365 Million Acquisition of Hotspot FX

Officials with BATS Global Markets said this morning that the equities-trading firm would acquire Hotspot FX, an institutional spot foreign exchange market, from KCG Holdings for $365 million. The deal, which expected to close before summer, would give BATS greater capacity for non-equity trading businesses and a foothold in the world’s largest asset class, with $5.3 trillion in turnover for 2013.

Hotspot is an innovative foreign exchange leader, BATS chief executive, Joe Ratterman, said in a release announcing the all-cash deal, and it will become an important part of the firm’s expanding global footprint. “Their FX expertise and reputation, along with our technology excellence and global presence, will make for a powerful combination and enable us to have a meaningful and significant impact on the direction of the FX market in the years to come,” he said.

BATS said Hotspot’s had an average daily volume of $31.7 billion in the fourth quarter, up about 20 percent from the first half of 2014. It serves more than 220 banks, market makers, hedge funds and institutions.