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STOXX unveils enlarged Europe indices

EUROPE – Index provider STOXX has launched two indices covering new members of the European Union.

STOXX – co-owned by Dow Jones, Deutsche Boerse and the Swiss exchange SWX - said the Dow Jones STOXX EU Enlarged indices “measure the performance of the 10 new countries that became member states of the European Union in May 2004”.

The launch includes a total market index and a blue chip offering.

The total market index is a broad benchmark index covering 95% of the free-float market capitalization of its underlying markets. And there is an index covering the 15 biggest and most liquid stocks.

“The index is UCITS III compliant and provides all key features to be a suitable underlying for financial products, such as exchange-traded funds, structured products and derivatives,” STOXX said.

Managing director Lars Hamich told IPE the indices were a “commercial decision” designed to exploit a new geographic area. “People asked for it,” he added.

The firm is going up against rivals FTSE Group and MSCI who already have offerings in the market, he said, but added: “I think we have pretty strong change of winning in this market.”

Hamich added that there are a lot commitments to create products based on the indices – and that structured products could be launched in a “matter of days”.

After that, an exchange-traded product could follow in the first quarter of next year, he said.

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