BATS is ranked as the second largest stock market by market share in the U.S., Bradley Hope reported for the Wall Street Journal.

The exchange operator has been growing its ETF business since 2012 and currently lists 31 ETFs. In contrast, the NYSE and Nasdaq have over 1,000 listed ETFs on their exchanges.

BATS, though, is currently the top U.S. exchange for ETF trading volume, which has become a selling point for new issuers. Additionally, the exchange has adopted a favorable ETF market-making program, which provides incentives to market makers that put up their own capital to aid in tighter bid-ask spreads to promote liquidity and more efficient ETF trades. [BlackRock iShares Raising Liquidity in Smaller ETF Offerings]

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