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Euronext, a subsidiary of NYSE Euronext, is rounding out its index offering with covered call and protective put strategy indices, available from 19 June 2007.
- Covered call indices track the performance of a strategy that combines taking a long position in the index with the sale of an out of the money call option on the same index. This offers scope for outperforming the index, with reduced volatility, in a context of downward to moderately upward market trends*.
- Protective put indices track the performance of a strategy that combines taking a long position in the index with the purchase of an out of the money put option. This gives investors exposure to the index while at the same covering them against the risk of a significant downturn in the market*.
The launch of these new indices reflects Euronext's continuing commitment to providing investors, asset managers and structured product issuers with effective tools that match their needs and market trends.
More specifically, Euronext will be offering four new indices, two based on the CAC 40® and two on the AEX®: the CAC 40® Covered Call and CAC 40® Protective Put and the AEX® Covered Call and AEX® Protective Put.
These indices will be calculated continuously from 9 a.m. to 5.35 p.m. CET. The index base values are 100 at 30 December 1999 and historical data are available from that date.
More information is available at http://newindices.euronext.com and www.euronext.com
* Past performances are not a guarantee of future performances.
About NYSE Euronext
NYSE Euronext, a holding company created by the combination of NYSE Group, Inc. and Euronext N.V., commenced trading on April 4, 2007. NYSE Euronext (NYSE Euronext: NYX) operates the world’s largest and most liquid exchange group and offers the most diverse array of financial products and services. NYSE Euronext, which brings together six cash equities exchanges in five countries and six derivatives exchanges in six countries, is a world leader for listings, trading in cash equities, equity and interest rate derivatives, bonds and the distribution of market data. Representing a combined $28.5 trillion/€21.5 trillion total market capitalization of listed companies and average daily trading value of approximately $123.4 billion/€92.4 billion (as of March 31, 2007), NYSE Euronext seeks to provide the highest standards of market quality and integrity, innovative products and services to investors, issuers, and all users of its markets.
About Euronext N.V.
Euronext N.V., a subsidiary of NYSE Euronext, has successfully integrated local markets across Europe to provide users with a unified market that is broad, liquid and cost effective. Euronext is the largest central order book cash market in Europe and the second largest derivatives exchange in the world, by value of business traded.
Following the initial three-way merger of the local exchanges of Amsterdam, Brussels and Paris, Euronext acquired the London-based derivatives market LIFFE and merged with the Portuguese exchange in 2002. Euronext’s unique business model incorporates the individual strengths and assets of each local market and has been implemented on all of Euronext’s markets, covers technological integration, the harmonisation of market rules and the regulatory framework. The implementation of Euronext’s horizontal model designed to generate synergies has proved that the most successful way to merge European exchanges is to apply global vision at a local level. Euronext’s IT integration was completed in 2004, when a four-year migration plan resulted in harmonised IT platforms for cash trading (NSC®) and derivatives (LIFFE CONNECT®). As a result, every market participant now has a single point of access to trading. Euronext’s IT structure was rationalized in 2005 with the creation of Atos Euronext Market Solutions (AEMS), an IT services-related vehicle between Euronext and Atos Origin which is now a leading global provider of technology services to Euronext and other global capital markets.
