Direct Edge and BATS in talks to create US exchange: WSJ

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Electronic exchange group BATS Global Markets is in talks to merge with rival stock-exchange company Direct Edge Holdings, people familiar with the matter told The Wall Street Journal.

The deal that would create the second-biggest U.S. stock-market operator and could challenge the dominance of the New York Stock Exchange and Nasdaq by deploying technology tailored for rapid trading.

Talks are ongoing and could produce a deal or fall through, perhaps within days, the sources said.

Randy Williams, senior vice president of communications at BATS, said, "We don't comment on market speculation and/or rumor."

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