Euronext Launches New Trading Index, Aggregating Top Performing Companies

Euronext has aggregated some of its most popular instruments on one cohesive index, which will be rebalanced during each quarterly

Euronext, Europe’s largest exchange, has launched a new trading instrument, the BeNe 40 Equal Weight index, which reflects the forty most traded companies on the exchange, including both the BEL 20 and AEX indices, according to a Euronext statement.

Euronext has opted to aggregate some of its most popular instruments in one cohesive index, which will be rebalanced and equally weighted during each quarterly review. In particular, the Euronext BeNe 40 Equal Weight index will be calculated as a price index, yielding a gross return index and an excess return index that is calculated and published every fifteen seconds.

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Despite its function as a popular instrument, Euronext’s new index will act as underlying for exchange-traded funds (ETFs) and other investable products, such as structured products.

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According to Michael Hodgson, Head of Licensing, Market and Global Sales at Euronext, in a recent statement on the index launch: “This newly launched index illustrates our efforts and commitment to respond quickly to the market’s needs and underscores the strength of Euronext’s indices as an underlying for all types of products. Additionally, the new index will help investors to gain better insight in the overall performance of the Dutch and Belgian stock markets.”

In addition to the index launch, Euronext has also licensed the BeNe 40 Equal Weight index to Natixis for the creation of Structured Notes. “This index will bring a simple and direct access to the best traded shares of both the Belgian and the Dutch market. It is a real trigger for all investors in the area, and a real pleasure for Natixis to be partner of Euronext to promote this unique underlying,” added Eric Le Brusq, Global Head of Equity Derivatives Sales & Financial Engineering for Natixis, in an accompanying statement.

Earlier this month, Euronext made headlines after it reported its volumes for the month ending August 2015. The results showed a turnaround for the exchange from July’s underwhelming performance, with a number of records having been set, including a rebound in average daily transaction value on the Euronext cash order book.

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