NO 243 – MAY 2013

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WFE Focus May 2013
Indices

BSE launches India’s first Islamic index

The Bombay Stock Exchange (BSE), in cooperation with S&P Dow Jones Indices, has launched an Islamic equity index, the S&P BSE 500 Shariah index, comprising all Shariah-compliant stocks of the broad-based S&P BSE 500 index.

Deutsche Börse launches new corporate bond indices

Deutsche Börse has launched the new XETRA Prime and Entry Standard bond index family, tracking all corporate bonds in these two market segments. Three indices are calculated, each as price and performance index: the XETRA Prime Standard Corporate Bond Price Index EUR, the XETRA Entry Standard Corporate Bond Price Index EUR, and the XETRA Overall Corporate Bond Price Index EUR.

Eurex launches GC pooling indices

Eurex Repo launched in cooperation with STOXX, the STOXX GC Pooling index family, including the migration of the existing GC Pooling Indices calculated by Deutsche Börse into the new index family. The new indices are designed to provide transparent, rules-based alternatives to unsecured interbank benchmarks such as LIBOR and EURIBOR/EONIA. The new indices can be used for benchmarking purposes in the money market, and as underlying for financial products.

ISE develops new ISE high income index

The International Securities Exchange has signed a partnership with YieldShares, a new firm in the ETF industry. Both parties will jointly develop and launch the ISE High Income Index, an index that allows investors to efficiently track a portfolio of high-income and high-discount closed-end funds.

JPX Group develops new index

The Japan Exchange Group, the Tokyo Stock Exchange and Nikkei have agreed to jointly develop a new stock price index for the purpose of contributing to the further development and vitality of the Japanese securities market on the occasion of the merger of the Tokyo and Osaka equity markets. The two companies have agreed to combine their respective index developments skills, maintenance know-how and other strengths to launch a new index with the common goal of promoting Japanese companies with high investment appeal at home and abroad. The index will be comprised of companies listed on the cash equity markets slated to be combined within JPX Group (the current TSE 1st section, TSE 2nd section, TSE Mothers, OSE 1st section, OSE 2nd section and JASDAQ markets).

Moscow Exchange adopts new methodologies for blue chip indices and free float

On 19 April 2013, Moscow Exchange adopted the blue chip indices and free float methodologies. The new methodology adopted for the blue chip indices was designed as part of the project to create the single index family of the Moscow Exchange. The blue chip index will continue the historical values of the RTS Standard Index. The free float methodology provides a new way to determine the number of stocks readily available on the public market. The methodology defines depositary receipts as floating securities.

Nigerian Stock Exchange to launch corporate governance index

The Nigerian Stock Exchange will launch a Corporate Governance Index for listed companies in Nigeria. To this end, the NSE has entered a partnership with the Convention on Business Integrity to provide a steady flow of robust data that will be used to develop a Corporate Governance Ranking System for listed companies in Nigeria.

Tokyo Stock Exchange starts calculating US dollar hedged index

To satisfy market demand for index values that hedge foreign currency risk, the Tokyo Stock Exchange has been calculating and publishing the TOPIX Total Return Euro Hedged Index since January 2011 and will now begin calculating the TOPIX Total Return Index hedged in US dollars. This index is calculated by hedging beginning-of-period balances using rolling one-month USD-JPY currency forward contracts.

Vienna Stock Exchange launches ATX global players index

The Vienna Stock Exchange launched a new index, the “ATX Global Players”, which tracks companies that are world market leaders in their niche. It comprises companies of the prime market that have at least 20% of sales revenues from outside Europe. There are no restrictions as to the number of inclusions or removals from the index. The sectors with the highest weightings in the index are: manufacturing technology & machinery (37%), mining & metals (24%), chemicals (11%), petroleum & natural gas (11%).