Bats Exchange, the fourth-largest US equities market, is set to extend its trading hours to gain an edge on its biggest rivals in a move that has previously proved controversial in Europe.

The exchange said it will remain open until 17:00 EST rather than 16:00 from next Tuesday. The change means Bats will stay open an hour after the close of arch-rivals the New York Stock Exchange and Nasdaq Stock Market, although both exchanges allow trading on their electronic platforms until 20:00.