"XACTOMX is a revolutionary product in the equity market, which will be very attractive to both retail and institutional investors," says Niklas Midby, Executive Vice President and head of the Transaction business area within the OM Group.
Units in exchange-traded funds are traded directly on an exchange, just like equities. XACTOMX combines the most attractive element of mutual funds - diversification of risk - with the advantages of equities - high liquidity, transparency and accessibility. With an index fund, investors know the exact composition of the fund and can buy or sell units at any time during trading hours. In combination with other financial instruments, XACTOMX can be used to hedge positions.
Exchange-Traded Funds (ETFs) have been very successful in the US. In 1993, Amex (American Stock Exchange) started trading in SPDRs (also known as Spiders). Since then, Amex has introduced 30 different index funds, which today account for two thirds of daily volumes on the Amex.
XACTOMX will be managed passively by OM XACT Fonder AB, a wholly owned subsidiary of OM Gruppen within the Transaction business area. The start of XACTOMX trading is conditional upon approval by the Swedish Financial Supervisory Authority.
OM Stockholm Exchange's Fund Market will also be open for the listing of other funds. Within the Transaction business area, OM owns and operates exchanges and clearing houses such as the OM Stockholm Exchange, the OM London Exchange and Jiway. Within the OM Technology business area, OM develops and sells IT solutions to marketplaces and their players in the financial and energy markets. OM currently has operations in 11 countries. The parent company, OM Gruppen, is listed on the OM Stockholm Exchange.
