For BATS Global Markets, one of the largest stock market operators in the country and a superstar in the world of electronic exchanges, Friday, March 23, should have marked the pinnacle of this young exchange's existence.  The former start-up electronic market center had risen to prominence, by aggressively undercutting competition and capturing market share from its more established rivals.  Today, Friday, it would gain the recognition is sought and deserved.  BATS’ offering was handled by Morgan Stanley, Citigroup, and Credit Suisse. U.S. exchange operator BATS Global Markets withdrew its initial public offering mid-Friday after it became clear investor confidence had eroded, its chief executive said on Sunday, adding there are no plans for an IPO in the foreseeable future. IPO was a "disaster." But little went right for the 3rd largest exchange in the United States.  First, it was priced to go public at $16 a share - at the low end of expectations.  The company’s most recent prospectus disclosed that the exchange operator had expected to fetch between $16 and $18 a share.  Assuming the company sold an expected 6.3 million shares, it raised $101mn through its IPO, that would value the company at $762mn. Then, a software bug briefly sent the price of the shares down from $16 to less than a penny before trading was halted. By midday Friday, BATS took the extremely rare step of withdrawing the IPO altogether.  According to CEO Joe Ratterman:

"Basically because we're an exchange listing our own stock and we're having trouble operating the auction process and continuous trading as an exchange, it became clear to us that investor confidence had eroded."

"We had a technical blip. It's completely regrettable and very painful.  We put other investors and the market's stability first, and our own needs second. So I think people will give us a shot to re-earn that trust." The decision to pull the IPO came after discussions with underwriters and with a board committee, Ratterman said, adding the IPO syndicate desk had heard from some concerned investors.  Ratterman added that he does not expect legal problems because no BATS shares or money actually changed hands on Friday. Because the auction trades were broken, "no investors will be out," he said. Ratterman's explanation and mea culpa came hours after Dave Cummings, the exchange's founder in 2005 and current board director, recommended that it push forward with the long-held IPO plans in the second quarter. More on the Company.   In existence only since 2005, BATS has become an unlikely force in the world of stock markets. It was founded not amid the hustle of Wall Street, but in the relative placid Kansas City, KS.  Still, the company has grown rapidly, claiming 11.3% of average daily trading volume for American stocks and 3.1% of American options by the end of last year. Among the major drivers of its growth have been acquisitions, including a $300 million deal for Chi-X Europe last year, giving BATS a bigger foothold on the Continent.  BATS was to have become the 1st stock market operator to have an IPO since the CBOE went public in 2010. BATS is owned by many of the world's largest banks and trading firms. In the last decade, it has taken on the NYSE and Nasdaq in the trading of stocks and recently, also wanted to challenge them in listings. For further details, go to:  [Dealbook, 3/23/12, BATS Goes Public @ $16 a share]   [CNBC, 3/25/12].