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FTSE launches tradable ‘supersector’ indices

EUROPE - New tradable ‘supersector’ indices have been launched and added to the FTSEurofirst Index Series. These will enable investors to trade a range of 18 sectors across Europe on a real-time basis.

Simultaneously, 18 New UK sector indices were launched by FTSE for the UK market. Based on the FTSEurofirst 300 index, which contains the 300 largest companies by market cap in the FTSE Developed Europe Index, the aim is to give investors access to over 93% of this index on a sector basis.

In April last year, three FTSEurofirst indices were introduced by Euronext and FTSE Group, designed to provide a series of indices for trading Europe, comprising the FTSEurofirst 80, 100 and 300 indices.

The 18 new sector indices are the first to be derived from the International Classification Benchmark (ICB), which has been developed jointly by FTSE Group and Dow Jones Indexes and introduced recently.

Mark Makepeace, FTSE chief executive, says “we are confident that OTC trading based on the new indices will begin soon, as they are a cost efficient and liquid alternative to existing products.”

By adding sector indices to the FTSEurofirst shows the joint commitment to have a full range of tradable indices covering the pan-European market (see listing), says Jean-Francois Theodore, chief executive of Euronext.

In the UK, the new FTSESupersector indices are the first ICB sector indices for the market. The stocks are drawn from the UK’s large and mid-cap companies in the FTSE350.

“They offer investors good representation of UK sectors through highly liquid fully tradable indices that are suitable for a range of OTC investment products, including exchange traded funds and derivative products,” says Peter de Graaf, managing director FTSE EMEA.


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