Bats Europe swoops on UK with indices launch

Bats Europe swoops on UK with indices launch

Stock exchange operator Bats Europe has launched a UK-focused index series with the backing of a number of British wealth managers.

The benchmark provider is looking to corner the market with the launch of 18 indices covering UK-listed companies across the market cap scale in 12 industry sectors.

It will also launch a rival index to investment management staple the FTSE 100, that will also include quarterly rebalancing.

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The index range have been developed in consultation with investors and benchmark users, and received the support of wealth firms including Rathbones, Hargreaves Lansdown, Alliance Trust Savings and AJ Bell.

Bats Europe will look to distinguish its offering from that of rivals, such as FTSE Russell, with features including real-time publishing of results - as opposed to those subject to a 15-minute delay - and simplified index licensing arrangements.

The firm is making a bid to tackle the dominant position of FTSE Russell, owned by the London Stock Exchange Group, in the UK index market.

It has made strong emphasis on its real-time proposition and the backing of investment firms could see its propostion grow in popularity.

Wealth and asset managers have often vented frustration at the concentrated power in the sector.

Paul Chavasse, Head of Investment, Rathbones said: “Bats is providing a comprehensive, robust and low-cost set of real-time indices to end investors. This will offer more depth to the market for data provision, giving clients the information they need to help build and monitor their portfolios better.”

Bats Europe chief executive Mark Hemsley said: “A lot can happen in fifteen minutes and by giving investors an accurate, immediate view of precisely where the market is moving, we can help them make better informed trading and investment decisions.

“Throughout our history, we’ve sought to make markets better, and more cost-efficient, for investors and traders. This is a first and very important step in improving index provision in Europe.”