A stock exchange company planning to go public says federal regulators are looking into its trading strategies, orders and communication with market participants.
BATS Global Markets made the disclosure in a regulatory filing this week. The company says it is cooperating and the investigation is in the early stages.
The company says the enforcement division of the Securities and Exchange Commission has asked it for documents. The Wall Street Journal reports the inquiry is focusing on ties between stock exchanges and electronic-trading firms.
BATS Global Markets is based in Lenexa, Kan. It says its two exchanges account for as much as 12 percent of U.S. equity trading every day.