Global exchange operator NYSE Euronext has launched a new index which tracks international stocks listed on its Paris bourse.
The new CAC International 25 index tracks the performance of the 25 largest international companies based on total market capitalisation and local trading volumes, with index constituents equally weighted.
Including the likes of Caterpillar, Coca-Cola, Diageo, Dow Chemical, Ford, HSBC and Rio Tinto, the new index is calculated and published at the end of each trading day after the market closes. It is comprised of companies listed in Paris whose country of incorporation is other than France and which are not included in the tradable CAC, BEL or AEX indices.
“The new CAC International 25 Index demonstrates our commitment to offer increased visibility and better liquidity to international companies listed in Paris,” said Diederik Zandstra, head of international listings at NYSE Euronext.
Rather than a tradable index, Zandstra said the CAC International 25 provided greater visibility.
“With about 600 securities listed on NYSE Euronext in Paris, 60 of them are international companies and the CAC International 25 – which only includes global companies with market capitalisation over US$1 billion – highlights the international nature of the exchange,” Zandstra told theTRADEnews.com. “This is early days for the index but if over time we see active trading, then in the future we may look to develop a more tradable version.”
“Inclusion in one of NYSE Euronext indices, which are market benchmarks, increases visibility in the financial community,” added George Patterson, head of global index design, global index group at NYSE Euronext.
The index will be revised annually in September and rebalanced four times a year in March, June, September, and December.
In July last year, the exchange group launched a new trading venue in London for international companies that wish to list in the UK, designed to further unify its global trading offering.
NYSE Euronext London competes directly with the London Stock Exchange’s International Order Book (IOB), a service providing traders with access to securities via global depository receipts across 46 countries. NYSE Euronext declined to disclose figures regarding uptake of the London listing service.
Last week, pan-European equities trading platform Chi-X Europe and indices provider Russell Indexes launched a Chi-X Europe Russell Index (CHERI) series, which selects the best stocks from 14 European markets and are designed as tradeable products which tightly track the less tradeable incumbent European benchmark indices.