- FTSE Group and Euronext co-operate to create 2 new indices for Europe: the FTSEurofirst series
- FTSEurofirst indices combine high liquidity and better market coverage and representation to provide a superior index solution for trading Europe
- Futures and options will be listed on Euronext.liffe
FTSE Group ("FTSE"), the leading global index provider, and Euronext, the first international cross-border cash and derivatives exchange, today introduce FTSEurofirst, a new tradable suite of pan-European indices. FTSEurofirst is the result of a co-operation between FTSE and Euronext and combines high liquidity with better market coverage, representation, and index tracking, to offer a superior index solution for trading European equities.
Market consultation shows a real need for an alternative to the currently available tradable European indices. FTSE and Euronext, co-owners of the indices, decided to join forces in a partnership that combines world-class index development expertise and distribution capability through Euronext and through Euronext.liffe, the international derivatives business of Euronext.
The FTSEurofirst series comprises two new indices: FTSEurofirst 80 - which covers the current Eurozone and provides a basket of 80 stocks, and FTSEurofirst 100 which provides a pan-European selection of 100 stocks, using only two currencies and offering a much easier way to trade across borders in Europe. Futures and options on the new indices will be listed on Euronext.liffe in the next few months.
Mark Makepeace, Chief Executive of FTSE commented:
"The market is telling us that it wants competition. The Euro is firmly established and investors want broader Euro and pan-European indices with the same or better levels of liquidity. FTSEurofirst indices offer investors a broader, more accurate representation of the European markets but are still easy to trade. The new indices have an instant appeal and relevance to everyone trading in Europe."
FTSEurofirst's ground-breaking design and methodology ensures unparalleled accuracy, liquidity and performance. The FTSEurofirst indices will be backed by an aggressive marketing campaign in Europe to encourage investors to switch to the new indices. Market consultation shows that major institutions and providers of index-based products will quickly launch FTSEurofirst-linked products such as warrants, certificates, traditional funds and exchange traded funds.
Jean-Francois Théodore, Chairman of the Managing Board and CEO of Euronext commented:
"In co-operation with FTSE, Euronext is introducing a new benchmark in its markets, FTSEurofirst 80 and 100: simple, easy to trade and cost effective indices. FTSEurofirst benefits from the most accurate market representation for institutional and retail investors used to cover the European market. As the dominant force in the European cash and derivatives exchange industry, Euronext offers these market participants unmatched ease of access, cost efficiency and will soon provide a range of listed cash and derivatives index-linked products."
Market participants have welcomed the arrival of FTSEurofirst index series. Reactions from fund managers, asset owners, hedge funds and ETF experts can be accessed at www.ftseurofirst.com . The FTSEurofirst series begins calculation today. Index constituents, live data andback history data is available at www.ftseurofirst.com.
