Ask European traders what the dominant theme will be in this year’s markets and most will answer “consolidation”. That prophecy, based largely on persistently low trading volumes, looks set to become a reality more quickly than most would have expected, with US alternative exchange operator Bats Global Markets emerging as the preferred suitor for Chi-X Europe, Europe’s second-largest alternative trading venue.

The two companies revealed last month they had entered into exclusive talks lasting until February 11, and such a tie-up does not come as a great surprise given the more-than-50% crossover in shareholders between the groups.