Bats Europe has launched two Brexit indices to act as “bellwethers” for the UK economy as the country negotiates its exit from the European Union.
The Bats Brexit High 50 comprises the companies in the Bats UK 100 Index that derive the largest portions of their revenues from the UK, while the Bats Brexit Low 50 contains companies with the least domestic focus.
Combined the products are referred to as the Bats Brexit 50/50 Indices.
Already the constituents of the two indices have diverged significantly since the results of the Brexit referendum on 24 June last year.
The Bats Brexit Low 50 has risen over 23 per cent, while the UK-focussed Bats Brexit High 50 is virtually flat at 0.8 per cent.
Mark Hemsley, president for Europe at CBOE, Bats Europe’s parent company, says the indices are “bellwethers of the British economy” and will be offered to clients free of charge.
“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.”