Index provider Russell has launched a set of pan-European indices in partnership with Chi-X Europe as part of a global expansion of its index offering.
The provider is well-known in the US market, where it has had US-focused indices for some years; five years ago it launched a suite of global indices and now it has turned its focus to the European market.
Despite the fact that there is already an established eurozone benchmark in the Eurostoxx 50, Russell saw a gap in the market for a pan-European benchmark.
"Eurostoxx has done a great job on the eurozone but no one has really been able to capture success on a broader, pan-European market [scale], that is one of our main focuses," says Scott Stark, head of Russell Indexes Europe.
The indices have been developed in partnership with Chi-X, the pan-European equities exchange and they are designed to be easily tradable.
"What is unique about this is all of the prices will come directly from the Chi-X trading platform," explains Stark.
"The idea is you would have all of the underlying components traded on one exchange and then also ETFs and eventually derivatives all traded on single platform... Right now if you are trying to trade on a pan-European basis, a lot of times you will use the Eurostoxx 50, FTSE 100 and the SMI to get exposure, what we are trying to do is make it easier for everyone to trade all on the same trading platform."
The pan-European indices are the Chi-X Europe Russell PanEurope Index and Chi-X Europe Russell PanEurope 60 Index, and there are also two indices compiled of eurozone stocks; the Chi-X Europe Russell Eurozone Index and Chi-X Russell Europe Eurozone 40 Index.
Stark says that Russell expects a lot of interest to come from US investors who are "coming over and looking at an easy way to invest in the European market place", but the company has also had discussions with European ETF providers which have global businesses.
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