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Bats Europe today announced it will launch eight new benchmark indices for the French, German, Swiss and Italian markets on 19 December 2016. The indices will offer real-time, high-quality and low-cost alternatives to those provided by the incumbent index providers.
Bats launched its index business in June 2016 with the introduction of 18 UK equity indices covering large to small cap securities and 12 FactSet-based industry sectors. Bats is building upon this momentum by expanding its index offering across Europe with the addition of new benchmark indices in these four key markets. Bats will continue to expand its index offering into other European national and regional indices over the coming months.
Mark Hemsley, CEO of Bats Europe, said:
As the largest pan-European stock exchange, we have unique insights into the needs and challenges of investors across the continent, many of whom have become increasingly frustrated by the rising costs of index data. We are excited to expand our benchmark indices business to these key European markets and provide investors and traders with real-time, high-quality benchmark indices in a cost effective manner as we challenge the incumbent index providers and bring competition to this vital part of market.
We welcome Bats’ further expansion into the European indices market as we believe that the industry will benefit greatly from choice and competition in the benchmark index space,” added Philipp Sfeir, President of SIPUG (Swiss Information Providers User Group).
Some key facts about the Bats Indices include:
- The Bats Indices are published in real-time. This compares to commonly used indices whose values are often delayed by 15 minutes.
- The indices provide accurate and reliable index data, transparently calculated, and valued using Bats’ high-quality market data. Bats Europe handles approximately 24% of all European equities trading across 15 major European markets on any given day.
- The indices are highly correlated with comparable benchmarks that investors use every day and are designed to accurately reflect market moves.
- Bats has simplified index licensing arrangements, with a long-term commitment to materially reducing costs to all investors.
- The indices all have a base value of 10,000 as of 31 December 2010, which makes the performance of markets and sectors easy to compare.
- All indices operate on a common rule set thus providing direct comparability.
- All Bats indices are available free of charge to media clients to distribute in real time. The indices are also free of charge for vendor and benchmarking purposes.
We believe the industry will benefit from increased competition and choice when it comes to benchmark indices and we are pleased that Bats is further expanding its index product line into other markets in Europe,” commented Rudolf Siebel, Managing Director, German Investment Funds Association BVI.
The exchange will take account of, and follow, the relevant International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks for its indices. Bats Europe will apply to its regulator, the Financial Conduct Authority (FCA), for approval as a Benchmark Administrator under the incoming Benchmark Regulation.