With the exception of the All-Shares index, the new indices are due to be launched on 3 January 2005. The timing responds to the demands of investors, who need a beginning-of-year roll-out in order to transfer their portfolios from the old indices to the new ones.
The launch is separate from the purely technical operation of switching from the current listing system to Euronext's new single list. Because of the large number of operations linked to the migration, the switchover will take place in two stages. Stage One, for equities and bonds, is scheduled for the evening of 18 February 2005; Stage Two, for other products, will take place on the evening of 25 February 2005.
The Index Steering Committee will meet
- quarterly to review the CAC Next 20
- annually to review the CAC Mid 100, CAC Small 90, CAC Small & Mid 190, and CAC IT 20.
The other ISC meetings will make it possible, where necessary, to replace stocks that may have been dropped from an index as a result of a corporate action.
The schedule for reviewing the other indices is unchanged: quarterly for the CAC 40 and annually for the SBF 120.
The indices will be computed retroactively from 1 January 1999. The CAC Next 20, CAC Mid 100, and CAC Small 90 will have a base value of 3000 at 31/12/2002. The reason for setting the value at 3000 is that the CAC 40 stood at 3063.91 at the close on 31/12/2002, and Europe's other main indices were around the 3000-point mark at the same date.
No, they won't. For the history period, i.e. from January 1999 to December 2004, they will be weighted by total capitalisation. The switch to float weighting will be made a few days before the actual launch, scheduled for 3 January 2005. As a result, the new indices will be computed and weighted on the basis of tradable capitalisation at the launch date.
- CAC Next 20 (computed every 30 seconds, like the CAC 40)
- CAC Mid 100 (computed every 30 seconds, like the CAC 40)
- CAC IT 20 (computed every 30 seconds, like the CAC 40)
Two indices will be disseminated twice per day, at the opening and closing auction:
For structured products, the underlying index needs to be computed continuously. "Unquoted" funds need to be valued on a daily basis at most, either at the opening or at the close. Any index that might be used as an underlier for structured products is computed in real time and disseminated every 30 seconds. For the other indices, twice a day is enough. Depending on the interest aroused by the new indices, Euronext may decide to switch some of them to continuous dissemination.
The published list is the one that will be taken into account on 3 January 2005, barring any mergers, acquisitions or takeovers that may take place in the meantime. The final list will be published on 13 December 2004.
A new brochure explaining Euronext Paris's index methodology will be available for download from our website.
Initially, historical data on the new indices for the period January 1999 - June 2004 will also be posted on the website. Once the indices have been launched, in January 2005, the full data history since 1999 will be accessible online.
A statistical review of the indices and the component stocks will be produced especially for the launch, with detailed information about calculations, performance, liquidity and risks. For further information, visit www.euronext.com.
The indices are the result of a market-wide effort. We set up a working group, which included mid-cap asset managers, to consult the financial community. Naturally, the Index Steering Committee was closely involved in this process.
