Both Bats and CBOE decined to comment on the Bloomberg report of a potential acquisition.
KCG is one of the largest stakeholders in Bats, owning more than 14 percent of the exchange operator, according to FactSet. As a result, KCG should benefit from the gains in Bats shares, Wells Fargo Securities analyst Christopher Harris said in a Friday morning note.
The report also said that a potential buyout of Bats should allow KCG to sell and profit from the sale of its holdings since KCG has not been able to sell any of those holdings due to a typical lock-up arrangement following Bats' IPO in April.
--CNBC's Evelyn Cheng contributed to this report.