IntercontinentalExchange Group (NYSE: ICE), the leading global network of exchanges and clearing houses, today announced that Liffe will introduce futures based on the FTSE 100 Equally Weighted Net Total Return (NTR) Index.
Following regulatory approval, Liffe will launch the industry’s first futures contract on the FTSE 100 Equally Weighted Index on May 27, 2014 via Bclear, the exchange’s wholesale facility. The new contract will complement Liffe’s existing franchise of FTSE index derivatives, which offers the most extensive and liquid range of FTSE index futures and options contracts.
Liffe is currently the only exchange to offer futures contracts on equally weighted indices, which are also known as ‘Smart Beta’ Indices. These benchmark products have become increasingly popular with the investor community as they seek to reflect the performance characteristics of a range of investment styles and strategies using transparent and rules-based methodologies.
“Liffe is pleased to be the first exchange to offer these futures contracts. We have worked closely with end users and index providers in recent months to meet new requirements for alternative investment strategies,” said Ade Cordell, Executive Director of Equity Derivatives, Liffe.
“We are delighted to extend our existing index licensing agreement with Liffe to include the FTSE 100 Equally Weighted Index, which will provide investors with an additional important tool when managing FTSE benchmarked portfolios” said Sudir Raju, Managing Director at FTSE Group.
ICE offers a range of futures and options contracts on international benchmark equity indices such as the FTSE 100, MSCI Europe, MSCI World and Russell 2000 and 1000 indices, via Liffe and ICE Futures U.S exchanges. The FTSE 100 Index is the most widely followed UK stock market index. It is comprised of the top 100 UK listed companies ranked by market capitalisation and includes many large international corporations.
