The BATS Exchange just received approval from the SEC to operate a Retail Price Improvement Program. Although BATS has a few slight differences, their Retail Program is very similar to the NYSE RLP program which was launched on August 1st (which just happened to be the same day as the Knight algo disaster). In their quest to steal back market share from the “internalizers”, the exchanges are essentially fragmenting the already fragmented equity market even further with these retail price improvement programs.
According to the SEC filing,
This content is restricted to site members. If you are an existing user, please login. New users may register below.