Bolsas y Mercados Españoles (BME) and FTSE Group (FTSE), the award-winning global index provider, have launched a new tradable index – FTSE LATIBEX BRASIL. The new index is the only Euro-denominated tradable index covering Brazilian stocks and ranks the most liquid Brazilian securities listed on LATIBEX (the Euro-denominated market for Latin American stocks owned by BME) by free-float adjusted market cap. At present, 13 stocks make up the FTSE LATIBEX BRASIL Index and the constituents’ weightings in the index are capped at 20% at index reviews.
The launch of FTSE LATIBEX BRASIL is the answer to investors’ growing interest in Brazil and meets current demand for an index of Brazilian blue chips listed on LATIBEX.
Constituents are liquidity-screened to make the index suitable for the creation of financial products, such as certificates and Exchange Traded Funds (ETFs). A Request For Proposal to issue ETFs on the FTSE LATIBEX BRASIL, as well as on the FTSE LATIBEX TOP, is to be launched soon. They will be listed on the ETF market segment of the Spanish Stock Exchange. At present, other products supported by FTSE LATIBEX TOP are available on different markets, such as: Belgium, Czech Republic, Finland, Germany, Italy, Estonia, Lithuania, Norway and Switzerland.
Jesús González Nieto, Coordinating Director, LATIBEX said: “This is a decisive step forward in the process of bringing Latin American companies closer to new global liquidity pools through LATIBEX, the Euro-denominated electronic trading platform for Latin American securities. LATIBEX breaks down barriers to trading in Latin American stocks and boasts the same execution and settlement standards as those of the Spanish stock market ”.
Imogen Dillon Hatcher, Managing Director, FTSE Europe said, “FTSE is delighted to have partnered BME to create an innovative new index for international investors looking to gain exposure to one of the best performing emerging markets. The FTSE LATIBEX BRASIL index will offer investors worldwide a new tool which is specifically designed to support structured products and ETFs.”
