BATS Global Markets got the go-ahead from securities regulators to list shares and take on the NYSE and Nasdaq in one of their bread-and-butter businesses.  BATS, which now only handles the trading of shares, stated that the SEC approved rules for its primary listings business, which is now set to launch in December.

This would be the first time in years that a newcomer challenged those two globally recognized exchanges.  Kansas City-based BATS expects to target companies looking to do a U.S.-based IPO. or those looking to swap listing venues.

Analysts, however, are skeptical that BATS will have much success, even though its backed by JPMorgan Chase, Citigroup and other large banks,.  That's because companies looking to raise capital, and profiles, often turn to traditional listing venues NYSE and Nasdaq - i.e., very strong brands.

BATS will try to compete by providing "simple, competitive pricing."   However, it didn't announce any prospective listings and, in the past, has said that it would not target specific sectors or regions.  New BATS rules call for initial listing fees to be $100K or $50K, based on the company's tier, and annual fees to be $35K or $20K.

Meanwhile, BATS hopes to launch its own IPO sometime early next year.  It would be "a feather in its cap" if BATS can grab some listings.   [Reuters, 8/30/11]