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X3 Leverage, Double Short and Triple Short strategies on key national European indices
4 February 2009 – NYSE Euronext (NYX) today announced the expansion of its range of strategy indices with the launch of twelve new products based on its national indices: AEX®, BEL 20®, CAC 40® and PSI 20®. For each of these national indices, three new strategies: X3 Leverage, Double Short and Triple Short, will be now available.
• X3 Leverage indices track the performance of a strategy that trebles exposure to an underlying index with the support of short-term financing. Thus, the X3 Leverage indices enable investors to earn a daily return that trebles that of the underlying index minus the financing cost embedded in the strategy.
• Double Short indices track the performance of a strategy that combines a double inverse exposure to an underlying index with the exposure to a risk-free money market instrument. Thus, the Double Short index reflects a strategy that yields, on a daily basis, the double inverse performance of an underlying index.
• Triple Short indices track the performance of a strategy that combines a treble inverse exposure to an underlying index with the exposure to a risk-free money market instrument. Thus, the Triple Short index reflects a strategy that yields, on a daily basis, the treble inverse performance of an underlying index.
These new indices are designed to be underlyings for Exchange Traded Funds (ETFs) and will provide investors with more trading choices.
“The launch of these indices extends our family of strategy indices which reflects our commitment to providing investors with additional opportunities to apply strategies using our blue-chip indices as a basis, and issuers of structured products with effective tools to meet their needs and keep pace with market developments” says George Patterson, Head of Global Index design, Global Index Group, NYSE Euronext.
The new indices are calculated and disseminated as from today, 4 February 2009. The calculation will be made continuously, every 15 seconds, throughout the trading day. The base value of the Double Short indices is set at 1,000 on 31 December 2002, while the Triple Leverage and the Triple Short have a base value equals to 10,000 at the same date.
Additional information
Since its launch in December 2007, the Strategy indices family, including twenty-four indices and six strategies, has been used as underlyings for five ETFs.
The new NYSE Euronext indices are listed below.
| ISIN |
Mnemonic |
Name |
|
|
|
CAC 40® X3 Leverage |
| QS0011146865 |
CAC2S |
CAC 40® Double Short |
| QS0011146873 |
CAC3S |
CAC 40® Triple Short |
|
|
AEX3L |
|
| QS0011146899 |
AEX2S |
AEX® Double Short |
| QS0011146907 |
AEX3S |
AEX® Triple Short |
| QS0011146915 |
BEL3L |
BEL 20® X3 Leverage |
| QS0011146923 |
BEL2S |
BEL 20® Double Short |
| QS0011146931 |
BEL3S |
BEL 20® Triple Short |
| QS0011146949 |
PSI3L |
PSI 20® X3 Leverage |
| QS0011146956 |
PSI2S |
PSI 20® Double Short |
| QS0011146964 |
PSI3S |
PSI 20® Triple Short |
For more information (historical index data, methodology, FAQ), visit: http://newindices.euronext.com
Background on NYSE Euronext’s Global Index Group: With a collective portfolio of over 300 benchmark indices, NYSE Euronext is a leading provider of indices. NYSE Euronext develops proprietary indices to showcase the strength of companies listed on its markets, and to provide investors and issuers with benchmarks that measure the world's leading, most liquid marketplace as well as its key segments. NYSE Euronext indices are available to be licensed as the basis for tradable products, including Exchange-Traded Funds (ETFs), to be launched in the future. In 2008, NYSE Euronext created the Global Index Group, bringing together the US and European index specialists from NYSE Arca, NYSE Euronext and the former American Stock Exchange. For more information on NYSE Euronext index services please visit: www.nyse.com/indices
About NYSE Euronext NYSE Euronext (NYX) is the world’s leading, most liquid and diverse exchange group. It offers a broad and growing array of financial products and services in cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions, all designed to meet the evolving needs of issuers, investors and financial institutions. Spanning multiple asset classes and six countries, NYSE Euronext’s exchanges include the New York Stock Exchange, Liffe, Euronext and NYSE Arca. With more than 6,500 listed issues, more than any other exchange group, trading on NYSE Euronext’s equity markets represents more than one-third of the world's cash equities volume. NYSE Euronext also manages the leading European derivatives exchange by value of trading. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit www.nyx.com.
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