FXCM and Dow Jones Indexes launch Currency Index
Dow Jones Indexes, a leading global index provider, and FXCM, a global online provider of foreign exchange trading and related services, today announced they have collaborated to launch the Dow Jones FXCM Yen Index.
The new index measures changes in the value of the Japanese yen against a basket of four of the most-transacted currencies against the yen: the U.S. dollar, the euro, the Australian dollar and the New Zealand dollar.
FXCM share price is trading at $10.80.
The index is the second to be offered collaboratively by Dow Jones Indexes and FXCM. In May 2011, the two firms launched the Dow Jones FXCM Dollar Index.
Both the Dow Jones FXCM Dollar Index and the new Dow Jones FXCM Yen Index follow a methodology that utilizes FX quantities as the basis of its calculation, rather than FX spot rates, to enhance transparency. With the goal of mimicking real-world FX portfolio construction, this approach also facilitates usage of the indexes as the basis for a wide range of instruments such as ETFs, mutual funds, forwards, futures, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, options, and structured products.
"We're pleased to build upon the success of the Dow Jones FXCM Dollar Index by offering investors a comparable index for the yen," said Michael A. Petronella, President, Dow Jones Indexes. "The Japanese foreign exchange market is the biggest in the world, and there is tremendous local and international investor interest in the yen. This index offers investors a unique tool for following the currency's relative value."
The index is constructed by initially equally weighting the following four currency pairs: USD/JPY, EUR/JPY, AUD/JPY and NZD/JPY. The index is reset to equal weighting only at rebalancings that occur in the event that the value of any single currency position declines by 90%, or in the case of qualified structural changes in the marketplace.
The four currency pairs were selected for the index primarily based on their Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and on real capital flows between the represented economies. Geographic diversification was another factor considered in selecting the currencies.
FXCM acquired Japanese broker GCI in 2011.
Dow Jones Indexes, a leading global index provider, and FXCM, a global online provider of foreign exchange trading and related services, today announced they have collaborated to launch the Dow Jones FXCM Yen Index.
The new index measures changes in the value of the Japanese yen against a basket of four of the most-transacted currencies against the yen: the U.S. dollar, the euro, the Australian dollar and the New Zealand dollar.
FXCM share price is trading at $10.80.
The index is the second to be offered collaboratively by Dow Jones Indexes and FXCM. In May 2011, the two firms launched the Dow Jones FXCM Dollar Index.
Both the Dow Jones FXCM Dollar Index and the new Dow Jones FXCM Yen Index follow a methodology that utilizes FX quantities as the basis of its calculation, rather than FX spot rates, to enhance transparency. With the goal of mimicking real-world FX portfolio construction, this approach also facilitates usage of the indexes as the basis for a wide range of instruments such as ETFs, mutual funds, forwards, futures, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, options, and structured products.
"We're pleased to build upon the success of the Dow Jones FXCM Dollar Index by offering investors a comparable index for the yen," said Michael A. Petronella, President, Dow Jones Indexes. "The Japanese foreign exchange market is the biggest in the world, and there is tremendous local and international investor interest in the yen. This index offers investors a unique tool for following the currency's relative value."
The index is constructed by initially equally weighting the following four currency pairs: USD/JPY, EUR/JPY, AUD/JPY and NZD/JPY. The index is reset to equal weighting only at rebalancings that occur in the event that the value of any single currency position declines by 90%, or in the case of qualified structural changes in the marketplace.
The four currency pairs were selected for the index primarily based on their Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and on real capital flows between the represented economies. Geographic diversification was another factor considered in selecting the currencies.
FXCM acquired Japanese broker GCI in 2011.