FTSE launches super-liquid EuroStars Index - LIFFE and AEX to launch derivatives on new 29-company Euro-zone index

FTSE International today launched a new low-cost, easily-tradeable Eurozone index - 'FTSE EuroStars' - containing 29 stocks from among the largest and most liquid companies from the Eurozone countries, "The Magic 29" are the stocks common to the major cross-border European indices on which derivatives are traded in Europe today. FTSE's EuroStars index compliments the existing FTSE equity indices series, acting as a transitional bridge for many traders who have yet to enter the zone of European derivative trading. And as the bell-weather for Euroland's 'super' blue-chip stocks, the index is ideally suited for the creation and issue of retail products. FTSE EuroStars will be visible and available to market professionals from 14th June, and futures and options will be launched on it on both Amsterdam exchanges and London International Futures and Options Exchange (LIFFE) from 29th June. The stocks included in the new index are traded on 5 markets and represent 8 French, 8 German, 7 Dutch, 3 Spanish and 3 Italian companies. They represent nearly 40% of the total market capitalisation of the FT/S&P Eurobloc benchmark index and are extremely liquid (an investment of 50million in the index would require trading less than 1% of the average daily stock market turnover of the constituent companies). George Moeller, Chief Executive of Amsterdam Exchanges, said:"EuroStars is a very attractive proposition for the market: compact, very liquid, and designed in a style that mirrors the smaller national indices of the continent. This gives the FTSE EuroStars index the potential to rapidly become the most tradeable and traded Euro index." Guy Simpkin, LIFFE's Director of Product Development, said: "We have very high expectations of the FTSE EuroStars index accelerating European index trading on LIFFE." FTSE International surveyed 45 different investment houses, banks and equity trading companies across Europe on their ideal Eurozone index and on barriers to Euro trading. An overwhelming majority (90%) stated liquidity as the most important asset of any equity trading index. The majority of those surveyed in Germany, France and Netherlands thought the ideal size was under 50 companies - endorsing FTSE's plans to release a 29-stock index. Mark Makepeace, Managing Director of FTSE International, said: "The FTSE EuroStars index completes our European product range. As a customer-focused company we respond to market demand, and many of our customers have been demanding a compact, highly liquid Euro-zone index, compiled to our usual high standards of transparency."