Index provider FTSE Group has made an agreement with the American Stock Exchange to develop exchange traded funds based on FTSE indices. They said in a joint statement that they have made an agreement “to promote the creation of ETFs for the U.S. marketplace”.

They said they will work together to identify potential sponsors that will create ETFs, based on FTSE indices, which will be listed for trading in the US. Sponsors would be selected before the second half of 2003. They did not disclose the financial terms of the agreement.

Mark Makepeace, chief executive of the FTSE Group, says: “This affiliation allows FTSE to tap into the Amex’s expertise and resources to help us create unique exchange-traded funds that meet the needs of investors seeking diversified portfolios.” The American Stock Exchange trades 125 ETFs, the statement added.