FTSE launches Super Liquid Index Series
29 November 2012
By Asia Asset Management
FTSE Group has launched the FTSE Super Liquid Index Series (SLQ), a broad family of real-time free float market capitalisation weighted indices designed to mimic the characteristics of key FTSE indices via a smaller, highly liquid universe of stocks.
FTSE Super Liquid indices incorporate a novel methodology to determine the index size and select the most liquid stocks from within each industry of the underlying index. The resulting basket exhibits reduced implementation, maintenance and replication costs, whilst retaining the industry weightings and performance characteristics of the parent index.
Peter Gunthorp, managing director, research & analytics, FTSE Group, said: “With the launch of the FTSE SLQ index series we are taking an innovative approach to creating index products by focusing on liquidity and diversification characteristics. The greater degree of liquidity is achieved by using two established liquidity measures; traded value and market impact, allowing investors to replicate an index in a cost-effective way. In addition, the indices are UCITS and CFTC compliant.”
Sudir Raju, managing director, ETP Relationships, FTSE Group, said: “We are very excited about the new FTSE SLQ index family and the opportunities that it will bring to the market. We believe that the result of this design process will offer significant value and choice to large trading counterparties on both the buy and sell side of the markets.”
The FTSE Super Liquid Index Series has been built to FTSE’s renowned standards of index design, which emphasises transparency, independence, innovation and strong governance. Eleven global, regional and single country indices are calculated in price, net and total return variations.
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