BME: New IBEX 35® Indices to be disseminated from 22 April

BME: New IBEX 35® Indices to be disseminated from 22 April

13/04/10

From 22 April, Bolsas y Mercados Españoles (BME) will begin to calculate and disseminate, in real time, the following indices: IBEX 35® WITH NET DIVIDENDS, IBEX 35® DOUBLE SHORT, IBEX 35® TRIPLE SHORT, IBEX 35® DOUBLE LEVERAGE and IBEX 35® TRIPLE LEVERAGE.

 

The IBEX 35® NET RETURN index incorporates fluctuations in the price of the index constituents as well as the return, net of tax withholdings, resulting from dividend payments and other shareholder remuneration. The index therefore shows the impact that the net amount of this type of remuneration has on a portfolio that tracks the IBEX35® index.

The IBEX 35® DOUBLE SHORT and IBEX 35® TRIPLE SHORT indices double and triple, respectively, daily fluctuations in the IBEX 35® WITH DIVIDENDS index in the opposite direction, i.e. if the return on the IBEX 35® WITH DIVIDENDS index in a single session is negative, the return on the IBEX 35® DOUBLE SHORT and IBEX 35® TRIPLE SHORT indices in that session will be positive by double and triple the amount, respectively.

The IBEX 35® DOUBLE LEVERAGE and IBEX 35® TRIPLE LEVERAGE indices offer double and triple exposure to the daily return on the IBEX35® index, through the investment of initial capital plus an equivalent amount of borrowed capital. A positive daily return on the IBEX35® index also yields a positive return, but double or triple that amount for the IBEX 35® DOUBLE LEVERAGE and IBEX 35® TRIPLE LEVERAGE indices, respectively, and vice versa. The index calculation includes the financing cost at a risk-free rate.

These new indices are intended to serve as underlying assets for financial products, such as certificates or Exchange-Traded Funds (ETFs). BME has started a proposal selection process in order to grant index user licenses for ETFs. These new indices provide investors with a broad range of investment strategies.