Bats Europe launches Brexit indices

Bats 50/50 indices designed to assess impact of Brexit on companies with large revenue portions in the UK.

Bats Europe has developed two new indices designed to provide insight into the impacts of Brexit ahead of Article 50 being triggered by the UK government.

The Bats Brexit 50/50 indices will act as barometers for assessing how Brexit will impact UK companies by analysis of performance between those that generate a large portion of revenues from the UK.

Bats teamed up with financial information provider, FactSet, to develop the indices, which are calculated in real-time using FactSet’s geographic revenue exposure data tool.

To create the indices, the constituents of the Bats UK 100 Index (BUK 100), which tracks the top 100 UK-listed companies based on market capitalisation, were split into two groups – those with the largest and smallest proportion of GBP revenues.

Since the UK EU referendum on 23 June 2016, the Bats 100 UK Index is up over 16% in price performance, driven by the significant near 17% and 13% decreases in the value of sterling over the period against the US dollar and Euro.

Mark Hemsley, president of Europe for CBOE, which recently acquired Bats Global Markets, said the triggering of Article 50 will fundamentally change the way businesses behave.

“We are providing these bellwethers of the British economy through our network of vendors free of charge so that they are readily available to all as we navigate the complexities of Brexit,” he added.

Bats said the indices will operate under the same rules and methodologies for its other benchmark indices and will be available on its website, Bloomberg and Reuters.