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The index universe of SWX is set to be broadened through the launch of the capped SLITM index. The SLITM will include the 30 largest issues in the Swiss equity market. The largest of those stocks will be given a maximum weighting of 9 %.
On 2 July 2007, the SWX Swiss Exchange will introduce the «SLI Swiss Leader IndexTM», a capped share index for the 30 largest Swiss stocks.
The SLITM will include a fixed total of 30 issues: the 20 stocks of the newly structured SMI® and the 10 largest issues of the SMIM®. The weighting of the four largest stocks will be capped at a maximum of 9 % and a weighting of the other issues will be limited to 4.5 %, if necessary. This new index will be administered as a separate brand from the existing range of indices.
The SLITM offers various advantages: for investors, the capping feature improves their stock- and sector-specific diversification and, because the new index fulfils Swiss, EU and US regulatory requirements, new markets can be opened with products based on the SLITM. That in turn generates liquidity for the stocks included in the basket.
Further information as well as the rules governing the SLITM can be accessed here:
http://www.swx.com/trading/products/indices/stock_indices/sli_en.html
