The third and fourth largest U.S. stock exchanges are merging. BATS Global Marketsis expected to merge with Direct Edge under the moniker BATS. As a result ofthe merger, BATS will be the largest stock exchange behind only the NYSE. Thedeal will be finalized in the first half of 2014. Kansas City will be location of the newcompany. It is expected that the deal will benefit customers by bring morecompetition to the market. According to the CEO of BATS, Joe Ratterman, “This agreement is an important milestone for the U.S. equities market and other markets around the globe as it will combine two organizations that have been innovative in creating a more competitive marketplace to benefit all investors. Our competitors have lost the ability to be as efficient as we are.” Before finalization, regulators must provide approval.