Introducing Bats data and indices

We have started using Bats data on the charts and data section of our website. Rob Morgan explains what it means for investors.

By Rob Morgan in Direct Comment, 9th Feb 2017 09:29am

Rob Morgan


Market indices are valuable tools for investors to ascertain the performance of equities and other asset classes, or to provide a benchmark for their own investments. An index is a measure of the returns from a group of stocks designed to reflect the performance of a market, or a portion of a market, for instance an industry sector.

Chief among UK equity indices are the FTSE series, including the FTSE 100 of largest UK companies and the FTSE All Share. However, a challenger to FTSE’s long period of domination has emerged in the form of Bats Europe, a division of the Kansas City-based Bats Global Markets, which has released a series of benchmarks using data derived from trades on its own exchange. Charles Stanley Direct started using Bats data from 8th February 2017 and will phase out the use of FTSE data.

Who are Bats?

Bats Europe is the largest stock exchange in Europe by market share and value traded. Based in London, the exchange offers trading across 15 major European markets on one platform, simplifying cross-border equities trading. Over 30% of the value traded in European stocks each day is traded on Bats compared to an average of 18% on the London Stock Exchange. Globally, Bats operates the second largest stock exchange in the U.S.

Why the change?

Licence costs for using FTSE market data and indices have recently risen considerably, and in the interests of maintaining a great-value service to our customers we will phase out and replace them with equivalent Bats data and indices in the charting tools available on our website.

Bats provides a similar user experience of real time market data and transparent, robust and regularly rebalanced indices with significantly lower license fees, which is in keeping with our objectives of democratising investing and driving down cost.

How does Bats compare to FTSE?

Any investor using a Bats index will be able to get an accurate, real-time view of exactly how markets are moving. Bats has also designed its indices to have a very high degree of correlation to existing products.

The Bats UK 100 index, for instance, has performed very similarly to the FTSE 100 as the chart below shows, although Bats has its own methodology for compiling its index meaning very slight differences in terms of constituents and movements. It is a similar picture for other pairs of equivalent Bats and FTSE indices such as the FTSE All Share and Bats UK All companies, and the FTSE 250 (of medium-sized companies) and the Bats UK 250.

There is more in-depth information on Bats indices here.

How will this affect the website?

You will notice small changes to the data and charts pages reflecting the use of Bats rather than FTSE data. For instance, the FTSE 100 page will be phased out and replaced with a Bats 100 page similar to the screenshot below. However, the overall look and feel of the website will stay the same.

When is this happening?

Bats data and indices are now live on Charles Stanley Direct. For a period it will be possible to toggle between Bats and FTSE before FTSE data is phased out entirely in August 2017.

This website is not personal advice based on your circumstances. No news or research item is a personal recommendation to deal. If you are unsure of the suitability of your investment please seek professional advice.

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