NO 246 – AUGUST 2013

WFE Focus

CME Group to deliver credit spread futures indexes

CME Group and trueEX, the first CFTC-regulated electronic exchange for swaps, signed a non-binding agreement to forge a strategic partnership to develop trueEX credit spread futures contracts based on the newly created S&P indices that would be distributed to the global futures markets on CME Globex, subject to final agreement. CME Clearing will provide trueEX with clearing services for these products.

ISE ETF Ventures launches innovative indices

The International Securities Exchange and SecuredGrowth Quantitative Research, a financial technology and research development company, signed an agreement to develop and promote indexes that combine the performance of popular ETPs with the proprietary SecuredGrowth process to enhance the return of any benchmark index or portfolio in a fully transparent, low-risk and liquid manner. The SGQR SPY SecuredGrowth index, the first index established through the partnership, adds a systematic yield from a unique methodology that includes a portfolio of investment grade domestic corporate bonds and US government-issued Treasury and Agency notes.

Japan Exchange Group releases outline of new jointly developed index

The Japan Exchange Group and Tokyo Stock Exchange, along with Nikkei, have recently agreed to jointly develop a new index for which discussions are currently underway trying to define the basic concept for this new index. It should include constituents listed on JPX cash equity markets (TSE 1st and 2nd sections, Mothers, and JASDAQ). The number of constituents will be approximately 500 issues. A list of constituents should be released in the fall of 2013. The name of the new index is still to be determined. Real time dissemination via the TSE information system is scheduled to start by the end of 2013.

NASDAQ OMX expands global index family

The NASDAQ OMX Group has launched the second suite of the NASDAQ Global Index family resulting with the introduction of more than 21,000 new NASDAQ Global indexes. The NASDAQ Global Index Family represents more than 98% of the global equity investable marketplace and is now comprised of over 25,000 indexes. The family consists of global securities broken down by market segment, region, country, size and sector. The NASDAQ Global Index Family covers 9,000 securities with a combined float-adjusted market capitalization of over USD 37 trillion.

NYSE Euronext launches AEX Ext index

NYSE Euronext is extending its range of indices with the addition of the AEX Ext index. The new index tracks the market’s benchmark AEX-index, but with extended calculation and distribution hours, from 8:00 to 18:30 CET compared with 9:00 to 17:30 CET for the AEX-index. The AEX Ext index is calculated on the basis of the AEX-Index future traded on NYSE Liffe, adjusted for dividends and interest payments. It enables investors to track trends in the AEX-index outside normal trading hours, and to take positions at pre-market and after-hour sessions on NYSE Euronext’s regulated European market.

Shanghai Stock Exchange launches urbanization indices

On 26 August 2013, the Shanghai Stock Exchange, in cooperation with China Securities Index, launched the SSE and CSI Urbanization Indices. They are designed to serve as new benchmarks and investable underlyings for investors. They include the following indices: SSE Urbanization Index, SSE Urbanization Smart Cities Index, SSE Urbanization Green Cities Index, SSE Urbanization Transport Index, SSE Urbanization Consumption Index, SSE Urbanization infrastructure Index, and SSE Urbanization Intelligent Transportation Index. The index universe is the CSI All Share index.