London - Bats Europe and BIDS Trading, the provider of block trading in the U.S., have announced that Bats Europe has agreed to license BIDS technology to launch Bats LIS, a new block trading service for the European equity market.
Bats LIS (Large in Scale), which is subject to regulatory approval, is a large in scale indication of interest (IOI) negotiation and execution platform that will allow market participants to negotiate large blocks in European equities without revealing their intentions to the wider market.
BIDS Trader integrates with a buy-side trader's Order Management System (OMS) and Execution Management System (EMS), so buy-side traders interested in utilising Bats LIS can do so through their existing BIDS Trader GUI. Direct participants of the Bats Europe Exchange can also connect to Bats LIS via their existing Bats physical connections.
Bats LIS aims to provide buy-side traders with protection against information leakage surrounding their IOIs through several features. First, Bats LIS provides a designated broker model which allows buy-side traders to maintain their relationships with their brokers. It also brings together the block flow of both the buy and the sell-side, enabling crossing opportunities. Additionally, IOI disclosure and interaction is controlled by the buy-side dealer via customisable trading tools, including minimum block size and counterparty scorecarding and filtering based on past trading behaviour.