NO 247 – SEPTEMBER 2013

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Indices

BME expands IBEX 35 index family with target volatility indices

On 24 September 2013, BME launched a new family of 8 target volatility indices, expanding the IBEX35 index series. The new IBEX 35 Target Volatility indices will be calculated and disseminated in real time. The aim of these indices is to keep the risk of IBEX 35 index within preset levels. The strategy combines investments in equities with risk-free fixed-income, varying the proportion invested in each type of asset depending on market volatility.

NYSE Euronext Amsterdam and NYSE Euronext Lisbon to change index methodology

In March 2014, NYSE Euronext Amsterdam and NYSE Euronext Lisbon will change the selection basis of their indices (AEX-Index family for Amsterdam and PSI 20 index for Lisbon) from turnover to free float adjusted market capitalization ranking. These decisions were made to improve stability in the selection process and to maintain a good reflection of the listings on both Stock Exchanges. Several additional selection criteria will be introduced, aiming to improve tradability and market efficiency of the indexes, which will also strengthen the objective selection process.

Tokyo Stock Exchange to start calculating TOPIX net total return index

In response to the market demands of capturing net total return indices, which are calculated in consideration of tax on dividends, the Tokyo Stock Exchange will begin calculating and publishing the “TOPIX Net Total Return Index” and “TOPIX Net Total Return Currency Hedged Index”.