In short, Russell futures contracts expiring on NQLX on June 20th are based on pre-reconstituted Russell indices; while the futures expiring on July18th are based on post-reconstituted indices. By simultaneously selling a Russell June contract and purchasing a Russell July contract, and making and taking delivery, funds are pegged to a Russell ETF, without having to buy and sell the underlying securities. If a fund holds individual securities comprising a particular ETF, a trader can simply convert the individual shares by presenting them to Barclays Global Fund Advisors.
To further facilitate trading, market participants can take advantage of NQLX's block trade and exchange for physical (EFP) facilities to execute large-sized trades, without being penalized by excessive exchange fees. Interested market participants may call NQLX at (800) 761-1777 with any questions about the mechanics of a trade involving the Russell July 2003 contract.
Russell ishares Traded on NQLX
| Ticker | ETF |
| IWB | iShares Russell 1000 |
| IWD | iShares Russell 1000 Value Index Fund |
| IWF | iShares Russell 1000 Growth Index Fund |
| IWM | IShares Russell 2000 |
| IWV | IShares Russell 3000 |
These exchange traded funds are managed by Barclays Global Fund Advisors, a subsidiary of Barclays Global Investors, N.A., the largest manager of indexed products in the world.
Russell indexes were developed in 1984 to provide objective and transparent market benchmarks for investors and investment managers. The indexes and their methodology are continuously evaluated, including review by the Russell Index Client Advisory Board, which is comprised of fund sponsors and brokers as well as active and passive managers. To ensure transparency, Russell indexes are listed publicly to avoid market uncertainties when a company is added or deleted from a Russell index at annual reconstitution. Russell indexes are used by institutional investors and mutual funds as quantitative benchmarks for evaluating investment manager and fund manager performance.
NQLX is a fully electronic, federally regulated exchange formed as a joint venture between The NASDAQ Stock Market Inc.® and LIFFE (London International Financial Futures and Options Exchange). It lists security futures on both exchange-traded funds and the largest U.S. companies through LIFFE's electronic trading platform, LIFFE CONNECT™. For more information on NQLX, visit: www.nqlx.com
