Amsterdam Exchanges, which currently lists futures and options on the FTSE Eurotop I 00, also intends to list the FTSE Eurotop 300 for options trading. FTSE International and Amsterdam Exchanges intend to license another major exchange in Europe to trade futures on the two indices and discussions on this subject are being held with the London International Financial Futures and Options Exchange (LIFFE).
FTSE EUROPTOP 100 - A TRADABLE BASKET
The FTSE Eurotop I 00 was restructured in Apn'l to reflect fully the market capitalisation of the major European countries. Options on the index have been trading in Amsterdam since 1991 and dollar denominated futures and options trade on COMEX and AMEX in the USA. Comprising I 00 of the largest and most heavily traded European stocks, the index is designed specifically for its tradability. It covers 9 markets and provides a 40% exposure to total European market capitalisation.
FTSE EUROTOP 300 -'THE NEW.FOOTSIE FOR EUROPE'
The FTSE Eurotop 300 represents the largest 300 companies in Europe, providing exposure to approximately 65% of total market capitalisation in Europe and covers 13 different countries. It covers Europe's premier companies which are today included in indices such as the FTSE I 00, DAX 30 and CAC 40, providing country and industry coverage similar to today's benchmark portfolio indices. Real time FX currency and share prices data will be supplied by Reuters.
Mark Makepeace, Managing Director of FTSE International said: "The integration of the European Markets has begun and this process will certainly speed up as we move closer to the introduction of the Euro in 1999. We have seen a significant increase in demand for pan-European index-linked products in the OTC maret this year. These indices will meet this demand and be the basis for exchange traded derivatives in the run up to EMU."
George Moller, Chief Executive and President of Amsterdam Exchanges commented: "The combination of Amsterdam Exchanges' trading experience and FTSE International's index knowledge will provide the platform for us to succeed in creating the first truly liquid market for trading European index derivatives. The increasing volumes of the existing US listings indicate that there is a future for further listings in Europe."
Dick Snijders, Chairman of the FTSE European Index Committee, President of Philips Pensionfund and member of the Supervisory Board of Amsterdam Exchanges stated: "Europe needs pan-European indices capable of supporting trading in futures and options. More and more market analysis and investment is being conducted on a pan-European basis and the time is now right for these new indices to be successful."
Notes For Editors
1. BACKGROUND TO FTSE INTERNATIONAL
FTSE International manages and develops world-wide equity and bond indices ranging from the FTSE 100 to the FT/S&P Actuaries World Index. Their indices are extensively used b@, fund managers world-wide for investment analysis, performance measurement, asset allocation and for creating a wide range of index-linked tracking funds. Committees of senior fund managers, derivatives experts, actuaries and experienced practitioners independently review all changes to the indices ensuring that they are accurate, timely and without bias.
2. BACKGROUND TO AMSTERDAM EXCHANGES
Since 1 January 1997 Amsterdam Exchanges has been the central exchange organisation in the Netherlands for regulated trading in stocks, bonds, options and futures. Amsterdam Exchanges is the result of the merger between the Amsterdam Stock Exchange and the European Option Exchange (EOE-Optiebeurs). Amongst others Amsterdam Exchanges is composed of AEX Effectenbeurs (the stock and bond market), AEX Optiebeurs (the market for futures and options) and the exchanges' own institution for settlement and custody, AEX Clearing and depositary. AEX Optiebeurs is the world's second largest option exchange measured by premium turnover in stock and stock index options.
3. TRADING VOLUMES IN THE EUROTOP 100
The average daily volumes of listings of the FTSE Eurotop 100 index expressed in millions of ECU:
1991 - 3.5 1992 - 12.6 1993 - 21.4 1994 - 25.4 1995 - 20.0 1996 - 19.5 1997 Q1 - 31.7
4. THE FOLLOWING ORGANISATIONS ARE REPRESENTED ON THE FTSE ACTUARIES EUROPEAN INDEX COMMITTEE:
Amsterdam Exchanges Legal and General Salomon Brothers Banque Paribas Merrill Lynch SBC Warburg Close Fund Managers Nomura State Street Financial Times Phillips Pensionfund Sumitomo Bank Gartmore Prudential
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information, please contact:
Lex van Drooge, Amsterdam Exchanges AEX, Tel: +31 20 550 45 40
Paddy Manning, St James Corporate Communications, Tel: (0)171 436 4101
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