Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Mark Hemsley, Bats

23821

Bats Europe launches two Brexit indices

RELATED TOPICS​

Bats Europe has launched the Bats Brexit 50/50 Indices, two benchmark indices designed to reflect the impact of the UK’s decision to leave the European Union on UK companies.

The two indices – the Bats Brexit High 50 and Bats Brexit Low 50 – are designed to act as barometers for assessing how Brexit is impacting UK companies by analysing the difference in performance between those companies that generate a large portion of their revenues from the UK compared to those that have less revenue exposure to the UK.
 
Bats has partnered with FactSet, a global provider of integrated financial information, analytical applications, to create the new Brexit 50/50 indices.
 
The indices, which are calculated in real-time, use FactSet's Geographic Revenue Exposure (GeoRev) data to normalise and geographically analyse where UK-listed companies generate their revenues. 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.
 
The Bats Brexit High 50 comprises the 50 companies in the Bats UK 100 Index that derive the largest portions of their revenues from the UK. The Bats Brexit Low 50, meanwhile, comprises the 50 companies in the Bats UK 100 Index that derive the smallest portions of their revenues from the UK.
 
Mark Hemsley (pictured), president of Europe for CBOE, says: "The UK's triggering of Article 50 is expected to lead to fundamental changes in the way businesses and capital markets behave prior to and subsequent to the UK's separation from the European Union. We are pleased to provide the marketplace with benchmark indices that are designed to gauge investor sentiment towards UK companies during this critical time. 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."
 
Since the UK EU referendum on 23 June 2016, the Bats 100 UK Index is up over 16 per cent in price performance alone, driven by the significant near 17 per cent and 13 per cent decreases in the value of sterling over the period against the US dollar and Euro, respectively. In comparison, the Bats Brexit High 50 Index is nearly flat, up just 0.8 per cent while the Bats Brexit Low 50 Index is up over 23 per cent. The performance of the indices suggest that UK companies that generate a large portion of their revenues from outside the UK have fared better than those that generate a greater portion of their revenues from the UK.
 
Jeremy Zhou, head of indexing at FactSet, says: "For more than five years, we've been providing an innovative solution for estimating geographic exposure to help investors solve the geographic revenue puzzle. As markets become more integrated and companies expand operations beyond their domestic markets, GeoRev provides a valuable and standardised factor for analysing companies' revenues by geography, creating a consistent, accurate and normalised dataset ideally suited for alpha discovery, risk management, and performance analysis."
 
Bats' Brexit 50/50 Indices are managed under the same rules and methodologies used for other Bats benchmark indices so they can be compared accurately with other Bats national market and sector indices. Additional information is available via the Bats Brexit 50/50 Indices Fact Sheet.
 
The indices are calculated in real time and published on the Bats Indices website, as well as on Bloomberg and Reuters.

Latest News

The trading and investment platform eToro has extended its proxy voting feature to all stocks..
C8 Technologies, the London-based fintech founded by former BlueCrest Capital Management partners Mattias Eriksson and..
DWS has announced the latest development in its strategic growth push in Alternative Credit with..

Related Articles

Pension funds
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next decade, industry research reveals...
UK defined benefit (DB) pension plan sponsors could have access to GBP 1.2 trillion in surplus assets over the next..
Tim Crawmer, Payden & Rygel
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also, given that equities had a strong year last year, big funds have taken some chips off the table in equities and put them into fixed income...
Tim Crawmer and Frasat Shah of Payden & Rygel write that higher yields are attracting more demand from investors. Also,..
Lady justice
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI) strategies received glowing commendations from the Bank of England in its March report...
Top marks for the Pensions Regulator (TPR) whose efforts to improve resilience in the UK pension funds’ liability-driven investment (LDI)..
Pension funds
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are coming together to instigate a new industry coalition...
Four potential operators of pensions dashboards (Just Group, Legal & General, Moneyhub and Standard Life, part of Phoenix Group) are..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by