NYSE Euronext Lance Les Indices CAC et AEX Low Risk

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LOW RISK INDICES RESPOND TO GROWING DEMAND FOR BETTER RISK CONTROL MECHANISMS

Amsterdam, Paris -23 October 2012 - NYSE Euronext today announced the expansion of its range of indices with the launch of the CAC® Low Risk Index and the AEX® Low Risk Index. These low risk indices, developed in partnership with Finvex Group, are basedon the successful European national blue chip indices and provide new risk adjusted investment possibilities for investors and Exchange Traded Product (ETP) providers.

With the introduction of the new low risk index series NYSE Euronext is responding to growing demand from institutional investors for better risk control mechanisms. Through the use of advanced risk analysis tools and an optimization process, a robust insight into risk is achieved. The careful selection and weighting of equities in the low risk indices¹ aims at lower overall risk than traditional market capitalization weighted indices. The compounding of more stable returns also allows to target a positive effect on returns.

“Given the current challenging economic and financial environment, we are very pleased to be able to offer investors, in partnership with Finvex, the opportunity to reduce their market risk and volatility, thanks to these new Low Risk Indices.”, said George Patterson, Head of NYSE Euronext’s European Indices Group. “Due to the advanced risk adjusted technology we are able to extend our successful CAC and AEX index series and provide their respective markets with an optimized market risk strategy reducing volatility and drawdowns in declining markets.”    

Benedict Peeters, co-founder of Finvex Group, added: “Indices based on robust risk reduction technology are an attractive alternative or complement to traditional benchmarks that generally do not include any risk element. NYSE Euronext’s high quality platform is now including these advanced solutions and we are confident their client base will start tracking or using these indices in the near future.”

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About Euronext 
Euronext is the leading pan-European market infrastructure, connecting European economies to global capital markets, to accelerate innovation and sustainable growth. It operates regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. With close to 2,000 listed issuers and around €5.8 trillion in market capitalisation as of end June 2022, it has an unmatched blue-chip franchise and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets, one of Europe’s leading electronic fixed income trading markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. The Group provides a multi-asset clearing house through Euronext Clearing, and custody and settlement services through Euronext Securities central securities depositories in Denmark, Italy, Norway and Portugal. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, it also operates a number of junior markets, simplifying access to listing for SMEs.  
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