The new indices include two maturity bands for the existing EuroMTS aggregate inflation-linked index (1-10 years and 10+ years), a new aggregate index linked exclusively to eurozone inflation with two maturity band indices, and specific country inflation-linked indices for France and Italy. For France, two indices were introduced: one that includes OAT issues referenced to French CPI (excluding tobacco) and another that includes all inflation-linked OAT issues (OAT issues referenced to French CPI, as well as those referenced to the eurozone price index).
The enlarged EMTXi family follows the same principles of transparency, tradability and independence as the original EuroMTS Indices and is composed of sovereign inflation-linked bond issues traded on the EuroMTS Linkers Market with more than EUR2 billion outstanding and at least one year to maturity.
"The expansion of the EMTXi family comes in response to market requests for additional indices in this growing segment of the European inflation-linked market. The new inflation-linked indices were developed with input from CNO, the French Bond Association, as well as from key market participants", said MTSNext CEO Scott Stark.
The EMTXi is currently used as the basis for index certificates issued by Banca IMI. Lyxor Asset Management is expected to launch an exchange-traded fund (ETF) based on the EMTXi in the second quarter of this year, following regulatory approval.
Paolo Giulianini, Head of Equity Benchmarks, Banca IMI said: "We welcome the enlargement of the inflation-linked index family as it offers underlying indices for the continued development and growth of the European inflation-linked market."