FTSE Mondo Visione Exchanges Index:
Nasdaq-Amex and Credit Suisse First Boston Lists New Technology Index - New Index Options Designed to Reflect the Way Technology Funds Invest
Date 22/06/1999
The Nasdaq-Amex Market GroupSM today began trading options on The CSFB Technology Index (Amex:CTN). Listed on the American Stock Exchange®, the new equity index consists of 75 actively traded companies that include 50 of the largest U.S.-listed technology stocks and 25 other technology stocks selected by the Technology Research Group at Credit Suisse First Boston to add diversification by sector.
The new index, developed by Credit Suisse First Boston Corporation, is designed to benchmark technology stock performance by weighting its components in a manner more reflective of technology focused investment fund holdings. Using options on the Index, investors can manage their exposure to technology stocks, either creating opportunities for profit or hedging against risk.
"Credit Suisse First Boston has created a new tool for investors to trade the technology sector," said Clifford Weber, vice president for new product development at the Nasdaq-Amex Market GroupSM. "Unlike other indexes, the CSFB Technology Index weightings strike a balance between market capitalization and equal dollar weighting in a way more reflective of how technology funds invest."
The CSFB Technology Index is calculated using a modified equal dollar weighting methodology in which the 25 largest components are assigned a higher weighting than the rest, which are equally weighted. Adjustments to the Index are made on an annual basis to ensure that each component is represented at its target weight and continues to represent an important sector of the technology industry. CTN options feature "European style" expiration and cash settlement, meaning that options may be exercised on the last business day prior to expiration.
The Amex® trades options on 29 broad-based and sector indexes and 1,121 domestic and foreign stocks, as well as Long-term Equity AnticiPation Securities® (LEAPS®) on 122 stocks. Amex® is a leader in listing warrants on indexes, hybrid instruments and other structured products. The Amex® is home to the Index ShareTM Marketplace, which includes SPDRs®, Select Sector SPDRs®, DIAMONDSSM, MidCap SPDRsTM, WEBSTM and Nasdaq-100 SharesSM.
The Nasdaq-Amex Market GroupSM, which operates The Nasdaq Stock Market® and the American Stock Exchange®, is a subsidiary of the National Association of Securities Dealer, Inc. (NASD®), the largest securities-industry, self-regulatory organization in the United States. The union of Nasdaq® and Amex® creates the world's first financial market that brings together central auction specialist and multiple Market Maker systems.