Exponential Markets Automotive Indices

World class benchmarks

The world’s first tradable indices for automotive price volatility

We have combined comprehensive automotive transactional wholesale data with pioneering data science algorithms and methodologies to create an agile and responsive index that meets today’s challenges.

And every aspect of our indices, from analytics to oversight, has been designed to serve as the underlying instrument for automotive derivatives.

The Exponential Indices harness the latest in machine-learning capabilities, allowing them to drive modern risk management methods into the automotive ecosystem.

Used Vehicle Index

An industry first

The first tradable benchmark was developed over a century ago. Today, there are hundreds of tradable indices tracking pricing for metals, agriculture, energy, stocks, bonds, interest rates, and volatility for a wide range of commodity and securities asset classes.

Our index is the first for automotive price volatility.

Best in class

Our indices are underpinned by 30 years of transactional data and built by a team of industry experts with deep technical knowledge in data science, derivatives, and index design. To ensure our indices are performing at the highest level, we continuously test against industry benchmarks and automotive portfolios.

The Exponential Index is fully transparent with both construction and governance available to the market. We use a BMR compliant third-party calculation agent to administer our composite index, and we have deep industry expertise amongst our Index Governance Committee.

Agile and accurate

Our index leverages modern data science methodologies and industry-leading secondary market transactional datasets to accurately mirror the composition and track the performance of the US automotive market.

The result is a benchmark that delivers the most accurate and up-to-date tracking of the price activity for your automotive fleet or portfolio. To ensure our indices are performing at the highest level, they are regularly tested against other industry benchmarks and automotive portfolios.

Governance

Our indices are governed by an independent committee consisting of industry experts and market participants who provide broad oversight on all aspects of index construction, management, and distribution.

Exponential Used Vehicle Index

Innovative, accurate and robust

Our flagship index is the world’s first tradeable used vehicle index suitable to be used as a financial benchmark. Price volatility in used vehicles has increased significantly over the past decade and is a major contributor of risk for the automotive sector.

With the increasing frequency of "Black Swan" events and rapidly accelerating advancements such as battery electric vehicle technology, combined with the volatility within both micro and macro variables impacting supply and demand, prices are fluctuating dramatically. The impacts are felt broadly.

Our index can provide an effective risk management solution for automotive manufacturers and their captives, rental car companies, automotive insurance companies, and other financial institutions.

Tested against major leasing and rental car company portfolios, the result is an index that is both robust and accurate.

Our Used Vehicle Index has an 88% correlation to the Fitch Residual Value Gains Index - more than 10 percentage points higher than the leading legacy industry benchmarks.

Exponential Electric Vehicle Index

Enabling fleet electrification

The transition to Electric Vehicles is one of the key drivers of price volatility in the automotive industry — and having an accurate measurement of price fluctuations is a critical component for stability in the changing automotive landscape.

Built with the same rigor as our flagship Used Vehicle Index, the Electric Vehicle Index is created for automotive companies seeking solutions to successfully navigate the volatility that accompanies industry transformation.