Bats Europe launches new stock index to rival FTSE 100

Stock exchange firm Bats Europe unveiled 18 new market indices on Monday (13 June) covering different companies and different sectors, as it aims to compete with the FTSE 100 index.

Unlike the latter, which is delayed by 15 minutes for non-paying customers, the new indices will be live and will be available free to retail investors, while banks and and asset managers will be expected to pay.

However, given Bats has its own data deriving from trades on its own exchange, the firm indicated it aims to keep the price of subscription relatively low, which it hopes it could make the new indices a success.

"As anyone watching financial markets will know, a lot can happen in 15 minutes and by giving investors an accurate, immediate view of precisely where the market is moving, we can help them make better informed trading and investment decisions," said Mark Hemsley, chief executive of Bats Europe.

Bats added its Bats UK 100 index will closely correlate with the FTSE 100, though the former will see its list of constituents updated every three months, which will mean the two indices will not always include exactly the same companies.

Launched in 1984 by the London Stock Exchange Group, the FTSE 100 index has been the undisputed dominant index since its inception and a number of rival indices have failed to wrestle any meaningful market share from the index.