Euronext Initiates Trifecta of Country Indices Ahead of Expanded Launch

The new country indices for Germany, Italy and Spain will serve as the primer for new index futures and index

Euronext, Europe’s largest exchange, has implemented a trifecta of three country indices: the Euronext Germany Index GR (ENDEG), the Euronext Italy Index (ENITI), and the Euronext Spain Index (ENESI), according to a Eurozone statement.

The new country indices for Germany, Italy and Spain will serve as the primer for new index futures and index options at Euronext, which is slated for trading in Q3 2015.

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In particular, the new country indices constitute exposure to thirty companies with the highest free-float market capitalization listed on the main markets and a free-float higher than 15% and a 12-month velocity score of 20 or more.

Ultimately, three different variants of the country indices will be published, i.e. a price return, a net return, and a gross return index – this was structured in order to be able to offer investors greater transparency into the price performance of an index.

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The price return indices do not take dividend payments into account, while gross return indices include the fully paid dividends. In addition, net return indices also include the paid dividends minus the applicable tax amount. Derivatives will be available on the price return variant of the Euronext Spain Index and the Euronext Italy Index, as well as on the gross return variant of the Euronext Germany Index.

According to Michael Hodgson, Head of Information Services at Euronext, in a recent statement on the launch, “As a pan-European exchange we are pleased to announce the launch of these new European country indices outside our traditional Euronext countries, and the subsequent roll-out of derivatives products.”

“It will allow investors to gain insight in the current condition on European stock markets and enlarge their derivatives portfolio in their own familiar, transparent, regulated and cleared trading environment. With this launch we are expanding our extensive offering of indices and derivatives illustrating our successful combined business approach and our efforts to launch products that respond to the market’s needs,” he added.

Just last week, Euronext revealed the location of its newest office at the Marquis Building, Rue du Marquis 1, in Brussels, next to the historic Central Station. Its new location is the latest bid by Euronext to further its key role in financing Belgium’s real economy.

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