Euronext extends range of indices

PUBLISHED: 30 Dec 2013 @ 08:34 | Comments (0) |

Euronext N.V., a subsidiary of IntercontinentalExchange Group, (NYSE:ICE), is expanding its range of indices with the introduction of two new indices; the AEX® All-Tradable Index and the AEX All-Tradable Alternative Weighting Index.

The AEX All-Tradable Index includes all constituents of the AEX, AMX and AScX. Therefore the new index enables the investor to track the development of the 75 largest companies of Euronext Amsterdam. As a variant on this index, Euronext is launching the AEX All-Tradable Alternative Weighting Index. This index also includes all constituents of the AEX, AMX and AScX, however the adjusted capping allows for a more uniform distribution of the weights among the various constituents.

George Patterson, Head of Euronext Indices: “Investors are now able to see at a glance the price movements of a broad sample of companies traded on the Amsterdam exchange. Moreover, the indices will provide the underlying value for new products and thereby offer new investment opportunities. We welcome this addition to our wide range of indices within the AEX family.”

The AEX All-Tradable Index is weighted in the same way as the AEX®, AMX® and AScX®; the constituents are weighted based on free float adjusted market capitalization and with a so called capping of 15%. The capping for the AEX All-Tradable Index is determined at the annual review in March and provides a maximum weighting of 15% to each index constituent.

The AEX All-Tradable Alternative Weighting Index also has the same free float market capitalization weighting method as the AEX, AMX en AScX; however, the capping is adjusted to 9%. Furthermore, in this index the constituents that weigh more than 4.5% are subject to a maximum weight. Combined, these constituents can total a maximum of 36% on the date of review. The capping of the AEX® All-Tradable Alternative Weighting Index is determined each quarter.

The AEX® All-Tradable and AEX All-Tradable Alternative Weighting indices will be calculated as price index, net return index and gross return index. The indices are calculated and published every 15 seconds.

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