Rival exchange launches to challenge FTSE ‘monopoly’

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Bats Europe is launching a UK-focused benchmark to challenge the FTSE group of indices.

The stock exchange operator has launched the Bats UK 100 to challenge what it says is a “monopolised” market, reports CityAM.

The launch is supported by Alliance Trust Savings, AJ Bell, Charles Stanley Direct, Hargreaves Lansdown and Rathbones.

The index is part of 18 new indices launched today by the European arm of the Kansas City-headquartered Bats Global Markets group.

Bats is also focusing on cost with the indices, saying they will be “aggressively” priced and will have a “long-term commitment to materially reducing costs for all investors”.

The indices will also be published in real time, rather than at a 15-minute delay.

Bats chief executive Mark Hemsley says: “If you look at environments where there isn’t competition, you tend to have poor efficiency, too high pricing, lack of innovation, all of those. And that’s where the exchange world has come from.”

Alliance Trust Savings head of platform proposition Sara Wilson says: “The launch of the new indices is extremely positive news for the industry, giving investors the chance to access real-time stock market information from a respected source.”