The new organisation, called BATS Chi-X Europe, will account for a quarter of equities trading in Europe, the exchanges operator said.
A deal was initially proffered earlier in the year with the Office of Fair Trading (OFT) subsequently referring the acquisition to the commission in June.
However, the independent public body found that the deal would not have a negative impact on the equities market place.
In a statement, the CC said that âcustomers would have the power to prevent any attempt by the merged company to raise trading fees or worsen service quality, by taking, or threatening to take, their business elsewhere or even potentially sponsoring new entryâ.
Joe Ratterman, chairman and chief executive of BATS, welcomed the decision by the CC.
The combination of BATS Europe and Chi-X Europe will âcreate an even more formidable competitor in pan-European securities trading, offering greater market efficiencies for the entire investing communityâ, he explained.
According to BATS, Chi-X Europe equities market share stood at 19.5 per cent in the third quarter of 2011.
By Jim Ottewill