"The indices very clearly illustrate the functions of each structure. Investors and market participants can use them to easily check whether certificates live up to their claims,” explained Marc Zahn, spokesman for the Management Board of Scoach Europa AG.
The index calculations are based on products on the Dow Jones EURO STOXX 50® price index. This index encompasses the lion’s share of investor certificate volume. The guarantee certificate index also includes all products with equity underlyings. This selection allows a direct comparison of the efficiency of each structure with a broad market index. The index members are determined on a representative basis for each type of certificate, based on the respective product features. They are weighted using the actual volume invested on the market.
The German derivatives association (Deutsche Derivate Verband – DDV) supports this initiative. “Investors can compare the performance of their certificates with an appropriate benchmark. This leads to increased market transparency,” said Lars Brandau, managing director of the DDV.
The new indices are calculated for guarantee, bonus, discount and outperformance certificates, on a daily basis for the time being. They are available on the Scoach and EDG websites, at www.scoach.com and www.derivatives-group.com. In future, Deutsche Börse will disseminate these certificate indices via its CEF® data feeds.
