NO 242 – APRIL 2013

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WFE Focus April 2013
Indices

Borsa Istanbul renames indices

Borsa Istanbul, launched on 5 April 2013, changed the Exchange’s index abbreviation to “BIST”. From this date, the abbreviation “‹MKB” used in the equity market and debt instruments market indices changed to “BIST”.

ISE signs licensing agreement with Israeli ETF issuer

The International Securities Exchange signed a licensing agreement with KSM Sal Indices Certificates, the largest ETF issuer in Israel. The agreement licenses the ISE Water Index to KSM for its water fund.

Moscow Exchange adopts new methodology for index calculation and launches new broad market index

Moscow Exchange has adopted new calculation methodologies for its broad market, second-tier and sector indices. They were developed as part of the process to establish a unified family for Moscow Exchange indices. The new calculation ensures the continuity of the existing indices historical values. The broad market index will be the only new index which will be launched after the methodology effective date.

Moscow Exchange to change free float calculation method

The Moscow Exchange will change the free float calculation methodology by including stocks represented by depositary receipts traded abroad into free-float. It proposes that depositary receipts be always included in free float giving reasons that this makes the indices calculation more transparent, corresponds to international practice and allows presenting the most detailed structure of Russia’s market from the global investment perspective. It is expected that the new method will be employed beginning the June indices review.

NYSE Euronext launches ESG indices

To promote and support responsible investment, NYSE Euronext and Vigeo, the leading European expert in responsible performance, have teamed up to launch a range of indices focusing on the three pillars of responsible investment: the environment, social issues and governance (ESG). The new indices are the Euronext Vigeo World 120, Euronext Vigeo Europe 120, Euronext Vigeo France 20 and Euronext Vigeo United Kingdom 20. They include major listed companies from Europe, the Asia-Pacific region and North America. Euronext Vigeo index component stocks are the companies rated highest for control of corporate responsibility risk and contribution to sustainable development.

NYSE Liffe US extends index licensing agreement with MSCI

NYSE Liffe US has signed a license amendment with MSCI to expand the coverage of its suite of domestic and international index futures products on MSCI equity indices through 1 November 2021. This suite includes index futures products built on a range of MSCI equity indices such as the MSCI Emerging Markets and MSCI EAFE indices as well as the recently launched mini MSCI Canada, mini MSCI Emerging Markets Latin America and mini MSCI World indices.

Oslo Børs’ oil Service index becomes tradable

On 18 March 2013, Oslo Børs introduced the opportunity to trade futures on the oil services index, the OBOSX, for investors seeking a broad exposure to the development of the companies in the oil services sector.

Shanghai Stock Exchange to launch corporate subdivision bond index series

The Shanghai Stock Exchange will launch the SSE Corporate Subdivision Bond Index series on 3 May 2013. It is designed to describe the corporate bonds’ prices variation tendency as well as to serve as performance evaluation benchmarks for bond investors.

Shenzhen Stock Exchange launches two new scale indexes

On 20 March 2013, the Shenzhen Stock Exchange, in cooperation with the Shenzhen Securities Information, launched the CNI Large-middle Cap index, and the CNI Middle-small Cap index. They are designed to reflect the overall price movement of listed companies of different scales, and enrich CNI scale index system.

Stock Exchange of Thailand includes infrastructure funds in sectoral indices and REITs in property fund sector

The Stock Exchange of Thailand will include infrastructure funds under the sectoral index which is most relevant to its investments, while Real Estate Investment Trusts (REITs) will be listed in the same sector as property funds. Both types of funds will be included in SET index calculation to represent the whole market movement.

TMX Datalinx to create new global fixed-income index business

TMX Group’s subsidiary TMX Datalinx and FTSE Group have completed the transaction to combine their fixed-income businesses in a new joint venture, FTSE TMX Global Debt Capital Markets.