Securities market operator BATS Global Markets has received approval from the US Securities and Exchange Commission (SEC) for its retail price improvement (RPI) program.
The company is planning to roll out the program as a one-year pilot on 17 December 2012, which has been developed to maximize price improvement opportunities for retail investors.
BATS Global Markets president and chief executive Joe Ratterman said the company aims to offer better execution prices to retail customers, through upgrading the overall quality of the BYX Exchange for all market participants.
By implementing incoming retail orders against retail price improving orders and all other liquidity, the proposed program will offer material price improvement for retail orders sent to the BYX Exchange.
In order to obtain maximum improvement for retail orders, the program employs a strict price/time priority model and executes them at multiple price levels.
Retail Member Organizations (RMOs), who are eligible to submit retail orders, are a new class of market participants developed by The RPI program.
BATS develops and manages electronic markets for the trading of listed cash equity securities in the US and Europe and listed equity options in the US.