Is Merrill Lynch on to something with BATS? Well, like Lehman Brothers and Credit Suisse, it has bought a minority stake in the well-regarded ECN. But not just any ECN. BATS, which stands for Better Alternative Trading System, is the third biggest trading volume venue in the U.S., second only to the two top exchanges. Many think that Reg NMS will make it that much more attractive, the likely recipient of even more order flow. You can also credit founder Dave Cummings for some neat marketing. In January, for example, it ran a rebate program that resulted in it essentially paying for order flow. The company says it lost around $6 million. But it was able to boost its brand. Big broker dealers are hungry to control more of their own destiny when it comes to trade executions. You have got to think that privately held BATS would be seen as a very hot property.

For more:
- here's an AP article