"Our indexes are ideal for use as the underlying benchmark for the full range of exchange traded fund products," said Kelly Haughton, strategic director, Russell indexes. "Futures based on Russell iShares provide us with an excellent starting point in our relationship with Nasdaq Liffe Markets."
The agreement comes at a time of growing popularity for ETFs such as Russell iShares, which offer investors a basket of securities designed to generally track an index yet trade like a single stock.
"We are very excited to not only offer single stock futures, but also ETF futures. These products offer efficient fee structures, transparent pricing, and positive tax implications," said NQLX Chief Executive Officer Tom Ascher. "Combined with our unique market structure, these advantages should result in a very powerful investment tool."
Russell indexes currently are the basis for 23 separate derivative contracts that trade on the nation's options and futures exchanges. Twelve exchange traded funds, each based on Russell equity indexes and offered by Barclays Global Investors, trade on the American Stock Exchange.
