Under the MOU, FTSE will create a set of indices for the trading and benchmarking of financial products such as institutional and retail funds, Exchange Traded Funds, and derivatives contracts. The indices will be designed using international standards, will be free-float adjusted and based on the Industry Classification Benchmark (ICB).
The Exchanges in a joint statement said, “This is the first collaborative effort amongst the 5 Exchanges under the ASEAN umbrella and we see this as paving the way for future collaborations between the Exchanges. The development of indices based on international standards and recognised methodology by FTSE will facilitate the international visibility of the ASEAN markets, and help promote the ASEAN economies to both regional and global investors by branding ASEAN as an asset class”.
Mr. Mark Makepeace, Chief Executive, FTSE Group, said, “FTSE is delighted to be chosen as the preferred index partner by the ASEAN exchanges. The development of new innovative regional index products for the South East Asian market is an important step for investors looking to invest in the region.”
