26 June 2006
MTSNext is pleased to announce the continued expansion of the EuroMTS family of indices with the launch of the EuroMTS Eurozone Government Broad Index, a representative benchmark for the entire eurozone government bond market, and three country index families: MTS Deutschland, MTS France, and MTS Italy Government Bond Indices.
The EuroMTS Government Broad Index is composed of all fixed-coupon eurozone government bonds listed on the MTS trading platforms with more than €2 billion outstanding and more than one year to maturity. The new index complements the existing EuroMTS Global Index (ex-CNO Etrix Index), using a larger number of securities to reflect the eurozone government market and thereby offering investors a broader benchmark. The EuroMTS Government Broad Index includes eight sub-indices, which encompass the maturity bands: 1-3 years, 3-5 years, 5-7 years, 7-10 years, 10-15 years, 15+ years, 15-25 years and 25+ years.
In addition to sub-indices by maturity, the EuroMTS Eurozone Government Broad Index also includes sub-indices by country. Initially, these sub-indices cover Germany, France and Italy, the three largest eurozone government bond markets. Additional eurozone country indices will be added later this year. These country sub-indices provide for the first time a real-time comparison of the various eurozone government bonds markets versus one another and the entire eurozone government bond market.
Marie Brigitte Lejeune, Deputy Head of Fixed Income Funds Management, CM-CIC Asset Management, said: ""We welcome the launch of the new MTS country indices. These indices will provide a key reference for measuring the performance of local government bond markets within the eurozone, on a broad basis and all along the curve using the maturity bands.“
The new indices are each designed as investment benchmarks from which structured products, exchange-traded funds (ETFs) or derivatives can be launched. They adhere to the same principles of transparency, tradability and independence that are integral to the original EuroMTS Indices. The indices are calculated and published in real time from 9:00 to 17:30 CET with two daily fixings for each index at 11:00 CET and 16:00 CET.