New Used Car Wholesale Pricing Benchmark

By Staff Writer May 17, 2023 569

Fintech startup Exponential Exchange announced Solactive as its calculation partner for an index designed to serve as an industry wholesale pricing benchmark for used vehicles.

A leading provider of indexing solutions for the global investment and trading community, Solactive will use Exponential’s proprietary algorithms and industry-leading transactional wholesale data to calculate the index on a weekly basis. The resulting benchmark will be published on both Exponential’s and Solactive’s websites, and on various financial trading and analytics platforms after the index’s launch, which is expected later this quarter.

“With Solactive providing calculation and administration services for more than 25,000 indices for over 500 clients globally, we are excited to leverage their wealth of experience to ensure that our index is delivered in a secure and timely manner to the market participants that trade our products,” said Ryan Naughton, CEO of Exponential Exchange.

Exponential’s index will serve as a tradable asset that will enable large vehicle fleet owners – who might be exposed to significant asset risk should the value of their auto portfolio experience unexpected wholesale price fluctuations – to transfer portions of this exposure to buy-side market participants via futures contracts that are settled against the index. 

As a result, Exponential’s products promise a more efficient and cost-effective method for rental car companies, fleet owners, and large lease and loan portfolios to hedge for unexpected declines in the value of their vehicles.

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Last modified on Tuesday, 23 May 2023 02:15