Direct Edge, the second-largest electronic communications network (ECN), plans to file for exchange status within a few weeks, according to CEO William O'Brien. In 2005, Direct Edge--then the Attain ECN--was acquired by Jersey City, N.J.-based Knight Capital Group, which has since sold minority stakes in the operation to Citadel Investment Group's derivatives unit and Goldman Sachs.
The ECN has had designs on becoming an exchange since its larger rival, Kansas City-based BATS Trading, began publicly pursuing exchange status in mid-2007. O'Brien said the venue is "not looking to reinvent the wheel" and plans to submit a straightforward application--similar to that of BATS--that it hopes will receive relatively quick approval. BATS filed an application with the Securities and Exchange Commission in November and is expecting approval by August.
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