This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BATS IPO Canceled in Share Crash

Stocks in this article: AAPL C MS BAC CS

Updated with commentary from the Securities and Exchange Commission and BATS

NEW YORK ( TheStreet) -- Trading glitches at the high-speed electronic exchange BATS Global Markets (BATS) forced the withdrawal of the company's IPO Friday along with a dramatic, brief halt in Apple's (AAPL) shares.

The blowup could revive inquiries into high-speed trading almost two years after a "Flash Crash" roiled global stock markets.

"You would have thought this would be BATS' greatest day in their history; it's ended up to be a nightmare," says Scott Sweet, senior managing director at IPO Boutique.

A BATS spokesperson said that the company currently has no new IPO plans.

The company's failed listing on its own exchange also casts doubt over the ability for private exchanges to handle share offerings.

"Their aspiration of getting into IPOs has certainly taken a very hard knock," Sweet said.

According to Bloomberg data, the high-frequency trading venue's shares opened at $15.25, but subsequently fell to just 3.8 cents in early trading and were halted.

Those trades have since been canceled. BATS Global Markets also said that "system issues" impacting the stock trading of companies like Apple trading on its exchanges under ticker symbols between A and BF have been resolved.

The Securities and Exchange Commission said that it is looking into the trading issues at BATS on Friday.

"As is our practice, SEC staff has been and will continue to be in discussions with BATS to determine the cause and extent of the incident and steps BATS is taking to remedy the situation," said SEC spokesman John Nester.

The Lenexa, Kan.- based company priced an initial public offering of 6.3 million shares for $16 late on Thursday and shares were set to open on the company's own BZX Exchange under the ticker "BATS." After shares opened on the company's exchange at $15.25, the company's shares fell precipitously to just a few pennies, Bloomberg data shows.

At 3:42 p.m. ET, BATS said that as a result of trading issues, the company was withdrawing its IPO filing, which was to raise roughly $100 million.

"Although our affected market has reopened, in the wake of today's technical issues, which affected the trading of certain stocks, including that of BATS, we believe withdrawing the IPO is the appropriate action to take for our Company and our shareholders," said BATS Chief Executive Joe Ratterman in a statement.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs